Berkshire Hathaway, Warren Buffett’s investment company, has a major interest in buying the assets of the Italian insurer Unipol. The company must sell these assets as part of a merger with their peer Fondiaria-SAI, we learn from business daily II Sole 24 Ore this past Saturday.
In the newspaper article, we learned that Berkshire Hathaway is eyeing the company’s commercial assets being sold by Milano Assicurazioni. This is a unit of the Fondiaria group.
Italy’s antitrust authority is forcing Unipol to sell off their portfolio assets with the premiums coming to a total of around €1.7 billion, or $2.2 billion, in an effort to help rescue the Fondiaria-SAI group.
This merger will create the second-biggest insurer in Italy, and the deal is expected to go through by the end of this year.
Carlo Cimbri, Unipol CEO, mentioned in May that there have been at least 10 to 15 parties interested in purchasing their assets. Some of the companies include Allianz, Aviva, Zurich and Axa.
During 2012, Berkshire Hathaway’s insurance units accounted for 25% of the company’s revenue. Many of the investments made by Warren Buffett are viewed with the utmost approval of some of the most respected people in the business world.
All Nonbinding offers to purchase the assets of Unipol need to be submitted by next Friday, said II Sole.
Neither Berkshire Hathaway nor Unipol were available for immediate comment in regards to the current situation.