By Lisa Kerner
Charlotte, N.C., Oct. 31 - The Commerce Group agreed to be acquired by Mapfre SA for $2.2 billion in Mapfre's largest investment to date, according to a company news release.
Commerce is expected to merge with a U.S. subsidiary of Mapfre, with Commerce shareholders set to receive $36.70 per share.
Mapfre said it will fund the transaction in cash financed through an equity capital raising of $718 million, the issuance of bonds up to $1.14 billion and existing internal resources.
The Commerce Group is a property and casualty insurance company based in Webster, Mass.
Mapfre is an insurance company based in Spain with offices in Florida, New Jersey and Puerto Rico.
| Acquirer: | Mapfre SA
|
| Target: | The Commerce Group
|
| Announced: | Oct. 31
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| Transaction total: | $2.2 billion
|
| Price per share: | $36.70
|
| Expected closing: | Upon approvals
|
| Stock price of target: | NYSE: CGI: $31.12 on Oct. 30
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