Prudential P.L.C. has agreed to pay American International Group Inc. (NYSE:AIG) more than $35 billion for AIA Group Ltd.
The price would include $25 billion in cash, equity and equity-linked securities with a total face value of $8.5 billion, Prudential preferred stock with $2 billion in face value.
The price would be subject to closing adjustments, according to AIG, New York.
AIG and Prudential, London, which is unrelated to Prudential Financial Inc., Newark, N.J., hope to complete the deal by the end of 2010.
The boards of both companies have approved the deal, AIG says.
The deal is still subject to approval by regulators, including antitrust regulators, and by Prudential shareholders.
Prudential is one of the largest financial services companies in the world. In the United States, it may be best known as the parent of Jackson National Life Insurance Company, Lansing, Mich., and Curian Capital L.L.C., Denver, a separately managed accounts services firm.
AIG’s AIA Group unit has been selling life insurance in the Asia Pacific region since 1919, and it now does business in Australia, Brunei, China, Hong Kong, India, Indonesia, Korea, Macau, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
AIA sells group life insurance, credit life insurance, medical insurance and pension products. It has 23,500 employees, 323,000 agents and 23 million customers.
If Prudential completes the deal as planned, AIA will assume Prudential’s name, and the headquarters of the combined company will be in London, Prudential says in a statement not distributed in the United States or Canada.
Eventually, Prudential says, it would seek a “dual primary listing” on the Hong Kong Stock Exchange.