Tianan was unable to reach agreement with the Israeli regulator on a permit to control Clal.
China's Tianan Insurance Group today informed IDB Development Corp. (TASE: IDBD) that it is dropping its bid to buy Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS). The decision follows problems regarding the identity of the organization that would receive the permit to control Clal Insurance.
In August, Tianan Group, headed by businessman Li Haifeng, submitted an unbinding bid to purchase Clal Insurance. Two other Chinese groups also filed bids - Macrolink Group, and JT Capital - Chinese investment funds led by Harel Locker.
Tianan Group is China's second largest privately owned insurance company with 8 million customers. Tianan chairman Dr. Hong Bo said, "We thank IDB Group for conducting a fair, competitive and respectable purchasing process and wish IDB and Clal Insurance every success in their continued endeavors. We also thank the Supervisor of the Capital Market and Insurance and her representatives whom we met with several times as part of the discussions on receiving a control permit for the company. In those meetings no agreement was achieved on the subject of the identity of the body that would receive the permit to control Clal Insurance. Our position is that Tianan Insurance as a supervised financial institution is a worthy candidate to receive a control permit in Clal. Because this issue is so important for us we decided not to continue our bid. We continue to see the Israeli market as an interesting market with major potential and we will continue to examine opportunities to carry out purchases in Israel."
Published by Globes [online], Israel business news - www.globes-online.com - on December 21, 2015
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Izzy Cohen