Court clears Zurich's ClearView takeover, completion set for August

What's the deal? The Supreme Court of New South Wales has approved the scheme of arrangement under which ZurichDealroom has a profile for this one. Try Dealroom → Financial Services Australia will acquire all shares in ASX-listed ClearView Wealth. The court signed off on July 30, following shareholder approval on July 27.

The terms: Shareholders on the scheme record date will receive 60 cents in cash per ClearView share. Eligible holders are also set to receive a fully franked special dividend of five cents a share on August 12.

Why now? ClearView first announced the proposed acquisition on February 24. It plans to lodge the court orders with the Australian Securities and Investments Commission (ASIC) on July 31, when the scheme becomes legally effective.

What changes? ClearView will apply to suspend its shares from ASX trading from the close on July 31. The scheme is expected to be implemented on August 20.

What's the endgame? The deal brings ClearView's life insurance and wealth management businesses into Zurich Australia's operations. That strengthens the global insurer's position in Australia's life insurance and financial advice market.

The signal: The takeover marks further consolidation in Australia's life insurance sector, as global players absorb domestic specialists to build scale in a competitive advice market.

Read more: Riskinfo