CVC Teams with Swiss Re To Buy RBS Insurance Assets

Private equity firm CVC Capital Partners has teamed up with Swiss Re, the world’s largest reinsurance group, to make a bid for a majority stake in Royal Bank of Scotland’s UK insurance assets.

CVC held talks with RBS last week over a possible deal, according to a source familiar with the matter.

The bid would value the RBS division, which includes the household names Direct Line and Churchill, at more than £6bn ($10.41bn). CVC and Swiss Re would need to pay more than 3 billion pounds for a 51 percent stake.

The Sunday Times said the CVC bid is being led by Fred Watt, RBS’s former chief financial officer. It said the CVC-Swiss Re group is in advanced talks with RBS and has been given between four and six weeks to conclude a deal.

CVC, Swiss Re and RBS all declined to comment on the matter.

Source: Thomson Merger News