Prudential to acquire American Skandia. (Companies).Prudential Financial Inc. has signed a definitive purchase agreement with Sweden-based Skandia Insurance Co. Ltd. to acquire its U.S. division, American Skandia Inc., for $1.265 billion. The acquisition would propel pro·pel tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin Prudential into a top-10 spot in the annuity marketplace and significantly grow its third-party distribution capabilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Prudential said. The company said American Skandia is the largest distributor of variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. through independent financial planners Financial Planner A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. in the country, and it operates a mutual-fund business. Prudential said the purchase price under the acquisition would be $1.15 billion, but that it would also assume a $115 million liability that spokesman Robert DeFillippo said is related to taxes. The acquisition is subject to regulatory approvals, filing under the Hart-Scott-Rodino Antitrust Improvements Act The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (Public Law 94-435, known commonly as the HSR Act) is a set of amendments to the antitrust laws of the United States, principally the Clayton Antitrust Act. The HSR Act was signed into law by President Gerald R. , approval by the boards and shareholders of the mutual funds advised by American Skandia companies, and other closing conditions. |
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