Plans to takeover firms costing as much as £600m
RSA has confirmed to analysts and investors that is looking at large acquisitions worth about £600m that might need a rights issue, the FT reports.
It said there were “recently emerged opportunities that could be larger than ‘bolt-on’ acquisitions”, according to analysts at Keefe, Bruyette & Woods.
Greig Paterson, analyst at KBW, said that large deals could bring more risks than benefits and that the company could suffer more than expected from the economic slowdown.
Possible deals include:
- UK marine and specialist commercial lines
- Latin America
- Canada
The Nordic region and UK retail and corporate were unlikely areas, RSA said.
Opportunities had arisen because of restructuring or financially stretched owners, particularly banks and private/family companies, the company said.
