Tokio Marine Holdings is considering the acquisition of Scope Group, which could become one of its largest overseas deals to date. Discussions are continuing under a cooperation framework based on the results of due diligence.
Tokio Marine Holdings has identified Brisbane-based Scope Group as the leading acquisition candidate and is moving forward with its review following several months of due diligence. The potential targets are reportedly insurance companies in Australia and Canada.
By market capitalization, Intact Financial Corporation is considered the largest at approximately $34 billion, while Scope and IAG are valued at approximately $14 billion and $13 billion, respectively. Discussions are ongoing, but the transaction's feasibility remains uncertain.
Berkshire Hathaway has established a cooperation framework aimed at overseas acquisitions, including the acquisition of a 2.5% stake in Tokio Marine in March. In the potential Scope acquisition, the framework appears to be designed to support insurance M&A outside Japan.
In market trading, Scope shares rose more than 7% in Sydney, IAG rose approximately 4.5%, and Tokio Marine shares rose approximately 2%. In the longer term, Tokio Marine has experience with large-scale acquisitions, and the Scope acquisition could surpass those deals in size.