IAG To Acquire WES Insurance Business For AUD1.85bn
News: Insurance Australia Group (IAG) will buy the insurance underwriting business of Wesfarmers (WES) in Australia and New Zealand for AUD1.85bn (US$1.66bn). WES will record a pretax profit of AUD750mn (US$672.97mn) on the sale, according to a company's statement filed with the stock exchange. IAG will reportedly raise AUD1.2bn (US$1.08mn) in a share sale to fund the transaction. 'Wesfarmers has struggled to deliver on its own and IAG has an opportunity to enhance the performance of the acquired operations and also potentially squeeze out further synergy benefits on top,' Toby Langley, analyst at Nomura Holdings, said (Bloomberg).