So. Africa’s Old Mutual in Acquisition Talks with Skandia

South Africa’s Old Mutual plc confirmed that it is in preliminary discussions with Skandia concerning a potential transaction. It said only that “discussions are at an early stage and may or may not lead to Old Mutual making an offer for Skandia.”

An eventual takeover would see South Africa’s largest insurance and financial services group, which also does substantial business in the U.S. and the U.K., take over the largest Scandinavian insurance group.

Newspaper reports speculated that the price would be between £3 and £3.5 billion ($5.5 to $6.4 billion). A combination of the two groups would be valued at just under $15 billion.