German insurer Allianz announced in July it was planning to buy a majority stake in Singapore's Income Insurance. (Photos: CNA/Try Sutrisno Foo, Reuters)
SINGAPORE (Reuters): Singapore will block a bid by German insurer Allianz to buy a majority stake in Singapore's Income Insurance but remains open to a new deal if its concerns can be addressed, Prime Minister Lawrence Wong said in a Facebook post on Monday.
Culture, Community and Youth Minister Edwin Tong had earlier told parliament it would not be in the public interest for the government to approve the deal in its current form, which is valued at S$2.2 billion (US$1.68 billion).
Wong said on Facebook the government "came across additional information that gave us cause for concern" while reviewing the proposed sale, without elaborating.
"The Government has therefore decided not to approve the transaction," he wrote, but added there were no concerns over Allianz's suitability to acquire a majority stake in Income.
"Our concerns are over the structure and terms of this specific transaction," wrote Wong.
"We remain open to a new deal that Income may pursue with Allianz or other partners, so long as our concerns are fully addressed."
Allianz proposed the deal in July as part of its strategy to strengthen its foothold in Asia, but faced concerns in the city state with stakeholders worried the German insurer would abandon top shareholder NTUC Income’s social mission to provide affordable insurance for low-income workers.
Allianz, Income Insurance and NTUC Income did not immediately respond to requests seeking comment.
($1 = 1.3061 Singapore dollars) (Reporting by Yantoultra Ngui, additional reporting by Xinghui Kok in Singapore and Tom Sims in Frankfurt; Editing by Kim Coghill and John Mair) - Reuters
