iStatus: Post-Closing Filing
Acquirer: Fosun International Limited (Hong Kong SAR, China)
Acquired: Ironshore, Inc. (U.S.)
Value: US$1.84 billion
Industry: Insurance
Fosun International Limited (referred to commonly as “China Fosun Group”) completed the acquisition of Ironshore Inc., a U.S. based insurance and investment company, in November of 2015 (see Fosun International Press Release, Nov. 23, 2016). Shortly thereafter, Fosun was approached by CFIUS over concerns about Ironshore’s subsidiary Write USA that provides insurance coverage to federal employees. (See Reuters, RPT-INSIGHT-U.S. watchdog expands scrutiny to more Chinese deals, October 11, 2016 (noting Fosun was approached in December 2015); Insurance Journal, U.S. Treasury Unit Reviews Fosun’s Acquisition of Ironshore, June 8, 2016.) News reports indicated speculation about access to federal employee data “following the hack last year of employee records held at the Office of Personnel Management,” and that the parties have voluntarily filed a joint notice to the Committee on Foreign Investment in the United States (CFIUS). (Id.; Fosun Press Release, June 4, 2016 (stating “Fosun and Ironshore have voluntarily notified CFIUS regarding Fosun’s acquisition of Ironshore,”)) In September, the same trade publication reported that Wright USA was divested to Starr International Co., Inc., apparently quelling any concerns. (See Insurance Journal, Starr Buys Wright USA from Ironshore, Subsidiary of China’s Fosun, Sept. 26, 2016.) The current status of CFIUS review is unclear; however, recent reports indicate that Fosun International intends to sell Ironshore to Liberty Mutual for approximately US$3 billion. (See Insurance Journal, Liberty Mutual to Acquire Ironshore from China’s Fosun for $3 Billion, December 5, 2016.)
