Who 利益s from the CGU 合併?

By Daily Mail Reporter
Updated: 00:00 BST, 23 February 2000

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The 提案するd £19 billion 合併 of 保険 巨大（な）s Norwich Union and CGU will 影響する／感情 millions of policyholders and 株主s in the two companies - 同様に as 従業員s. These are the questions that 顧客s and 株主s should be asking.

What's the 取引，協定?
Norwich Union and CGU 計画（する） to 合併する into one company with the catchy 指名する of CGNU which would be the biggest 保険会社 in the UK. Since Norwich Union floated in 1997, giving 解放する／自由な 株 to its 2.1million qualifying 顧客s, it's been rumoured that a 取引，協定 was likely. CGU, itself the result of a 合併 between 商業の Union and General 事故 two years ago, wants to grow so it can compete with the 巨大（な） 保険会社s in 大陸の Europe.

What would 株主s get from the 取引，協定?
This 取引，協定 is called a 'nil 賞与金 合併'. What that means, 簡単に, is that 株主s won't make any money from the 取引，協定. CGU 株主s will 簡単に see their 株 改名するd CGNU. Norwich Union 株主s will also get CGNU 株. For each 100 Norwich Union 株, they will get 48 new CGNU 株. So, someone with the typical 300 Norwich Union 株 given at flotation in June 1997 will get 144 new CGNU 株. The 条件 of the 取引，協定 mean that, should it go through, 58.5% of the new company will be owned by CGU 株主s with the 残り／休憩（する） in Norwich Union 株主s' 手渡すs.

It doesn't sound too tempting. Is it a done 取引，協定?
By no means. 株主s in both companies will have to 投票（する） on the 取引，協定. There's plenty of time for a predator to come in and make an 申し込む／申し出 for either company. But whether 私的な 株主s - who own about 10% of CGU and 43% of Norwich Union - would be able to 投票（する） 負かす／撃墜する the 取引，協定 depends on what institutional 株主s think of the 取引，協定.

Who are the biggest 株主s in the two companies?
The biggest 株主 in Norwich Union is 競争相手 保険会社 the Prudential with 3% of the 株. CGU's biggest 株主 is 水銀柱，温度計 資産 管理／経営 with about 4% of the 株. Both companies 辞退するd to comment on whether they like the 取引，協定.

Is this the best 取引，協定 either company could have done?
The advantage of this 取引，協定 is size. CGNU would be the fifth largest 保険会社 in Europe and would 命令（する） 12% of all life 保証／確信 賞与金s in the UK and 19% of all UK general 保険 政策s.

While life 保証／確信 is a growth area, general 保険 is riskier: companies don't make as much money out of it as life because it's a higher-cost 商売／仕事 to 治める and the 利益（をあげる） 利ざやs are lower. So this is why the 取引，協定 作品 for CGU, which is more of a general 保険会社 than a life 保険会社. By joining with Norwich Union, CGU re-invents itself as a life assurer.

The 大きくするd company CGNU would be 名簿（に載せる）／表（にあげる）d under the life 保証／確信 部門 in the stockmarket listings.

However, the 利益 to Norwich Union is not so 明らかな, even though 長，指導者 (n)役員／(a)執行力のある Richard Harvey says it is 'an immensely 肯定的な 取引，協定' for 株主s.

What will happen to policyholders?
Only the 持つ／拘留するing company will carry the clumsy 指名する CGNU. The 計画（する） is that if the 取引，協定 goes through, then Norwich Union will become the brand 指名する used in the 部隊d Kingdom. So, if you've got a CGU モーター 政策, it will be 改名するd Norwich Union. The CGU 指名する will be used in some overseas markets where it's best known. In at least the short 称する，呼ぶ／期間／用語, the life 基金s of each company will remain separate.

I got my Norwich Union 株 as a windfall in 1997 and put them in my Pep. What happens to me?
Whether you'll get a 投票（する） on the 取引，協定 depends on the 条件 of your pep. Fidelity, for example, says it would 許す those pep-支えるもの／所有者s 影響する／感情d a 投票（する）, but only if they 支払う／賃金 a 告発（する），告訴（する）／料金 for 演習ing these 権利s. If the 取引，協定 goes through, then your Norwich Union 株 would just be swopped into CGNU 株.