Talanx is expanding its activities in Turkey by acquiring the property/casualty insurer ERGO Sigorta A.Ş. In conformity with its strategy in the Retail International division, Talanx is again strengthening its presence in one of its five core markets (Poland, Turkey, Brazil, Mexico and Chile) and thereby moving closer to its goal of ranking among the top 5 insurers in Turkey.
As a result of the acquisition the premium volume generated by the division in Turkey will increase by EUR 139 million to more than EUR 400 million and the market share will rise to more than 5 percent. The transaction is expected to deliver a positive profit contribution by the second year at the latest and hence also has favourable implications for the earnings per share. The parties have agreed not to disclose the purchase price. The transaction is still subject to approval by the relevant supervisory authorities, which is anticipated for the third quarter of 2019.
Paksoy, a leading full-service law firm in Istanbul, Turkey, focused on helping clients in a wide range of legal areas including cross-border investments, international business transactions, acquisitions and finance transactions, acted as legal counsel to the seller ERGO. Sera Somay (partner) led the transaction together with Nazlı Bezirci (counsel) and Can Yasin Aksoy (associate). Paksoy’s tax team, Şansal Cumhur Erbacıoğlu (counsel, tax specialist) and Eray Ergun (tax specialist) also advised on tax aspects.