AXA to Buy Out Turkish Partner

France’s AXA Group announced that it has entered into an agreement to acquire its Turkish partner OYAK’s fifty percent share in AXA OYAK Holding A.S., a company they established jointly in 1999. AXA said it will pay a purchase price of $525 million (€359.2 million) in cash for OYAK’s stake in the company.

“AXA OYAK enjoys a leading position (10 percent total market share) on the fast-growing Turkish insurance market,” said the bulletin. “Mainly focused on non-life, especially motor and property, the company has experienced strong top-line growth in the past years and is one of the most profitable players in the market. In the first half of 2007, AXA OYAK posted revenues of €342 million [$500 million] (+20 percent) and underlying earnings of €19 million [$27.8 million] (+26 percent).”

AXA noted that the acquisition gives it an opportunity to “significantly strengthen its presence in Turkey and is in line with its strategy of reinforcing its exposure to emerging insurance markets.”

The transaction, which is subject to local regulatory approval, is expected to close by early spring of 2008. Following closing, the parties have agreed that AXA OYAK and its subsidiaries will no longer use the OYAK name or trademark.

Source: AXA – www.axa.com