Standard Life has sold its Hong Kong arm, Standard Life Asia, to Heng An Standard Life Insurance Company, its Chinese joint venture.
The deal makes Heng An the second mainland company to acquire a Hong Kong-based insurance company in the last two weeks.
Standard Life announced the deal last week saying the transaction is still subject to approval from regulators in Hong Kong and the mainland, which could take 18 months. The final amount payable will be calculated on the date of completion and will be payable in cash. A consortium that included Beijing-based UCF Group agreed to pay HK$7.1 billion (US$910 million) for the entire stake of Hong Kong Life from five local financial firms including Asia Financial Holdings and Chong Hing Bank.
Standard Life Asia was established in 1999 in Hong Kong to sell life insurance and financial products through independent financial advisers and partners. Heng An Standard Life Insurance is an equally owned cooperation between Standard Life and Tianjin TEDA International Holding. Established in 2003, it sells life insurance and other investment products in 64 Chinese cities and eight provinces, serving more than five million customers.