Zurich granted more time over potential £8bn Beazley takeover

Insurance giant Zurich has been granted more time to decide whether it will make a formal offer to buy London-listed rival Beazley.

Zurich agreed a deal in principle to buy specialist insurer Beazley for around £8 billion almost two weeks ago.

Zurich had been granted a February 16 deadline to “put up or shut up”, meaning it must either submit a formal offer or walk away.

However, the two firms said on Monday the deadline has been extended until 5pm on March 4.

Zurich said it is still completing its “confirmatory due diligence” with support from executives at Beazley and the “process is progressing as planned”.

In a statement, the companies added: “The parties are simultaneously discussing the detailed terms of the transaction and progressing definitive transaction documentation.

“Accordingly, the board of Beazley has requested, and the Takeover Panel has consented to, an extension of the PUSU (put up or shut up) deadline.”

There is still “no certainty” a formal offer will be made.

The £8 billion deal in principle was announced earlier this month, two weeks after Beazley rebuffed a previous £7.7 billion takeover approach by Zurich.

The deal represents an almost 60% premium on Beazley’s closing share price before Zurich’s takeover approach became public.

Announcing the plans, the firms said: “The transaction would combine two highly complementary businesses and would establish a leading, global specialty platform with around 15 billion US dollars (£11 billion) of gross written premiums, based in the UK which would also leverage Beazley’s Lloyd’s of London presence.”

Zurich has more than 63,000 employees and has its headquarters in Switzerland.

Beazley is a specialist insurer, with a burgeoning cyber cover offering, as well as cover across professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business.