The Chinese company Fosun has bought Caixa Seguros from the Portuguese state for around €1 billion.
After buying control of Portugal’s energy sector through stakes in EDP and REN the Chinese were back today with their chequebooks open to continue their quest to buy up assets from the Portuguese state that have been listed as 'for sale' in agreement with the Troika.
Today’s agreement to sell off Caixa Seguros to Fosun, which took an 80% stake in the largest of Portugal’s national insurers, thwarted the plans of private US equity house Apollo Global Management which was not selected.
The Chinese persuaded the Ministry of Finance that they were the ones best suited to run this insurance behemoth and today the Council of Ministers adopted the recommendations from Finance Minister Maria Luís Albuquerque (pictured)
Apollo and Fosun were the selected bidders in September 2013 from a field five. The government had contacted 66 potential investors and 61 declined to get involved.
The acquisition by Fosun gives it control of Portugal’s largest insurance company Fidelidade which in turn owns health insurer Multicare, and travel and transport insurer Cares.
The Council of Ministers approved the proposal from Fosun as it was impressed by the cash element of the deal, the strategic plan for the insurer from Fosun, and the contribution to the preservation of unity for the insurance group, according to a Secretary of State for Finance.
"This decision was unanimously supported by our privatisation advisors, by the bank Caixa Geral de Depósitos and by the special monitoring committee," explained the Secreatry of State, Manuel Rodrigues.
Caixa Seguros has a 26% share of the Portuguese insurance market.
Still to be sold off are Portugal's national airline TAP, the country's postal service, the cargo part of train company Comboios de Portugal, and various tasty parts of Aguas de Portugal.