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Fairfax given nod for Brit deal

Fairfax Financial Holdings’ £1.22 billion ($2.32 billion) takeover of Lloyd’s global specialty insurer and reinsurer Brit has been approved by two of Brit’s largest shareholders.

Private equity groups Apollo Global Management and CVC Capital backed the deal.

Last week Canadian group Fairfax declared the offer unconditional after it received votes in favour representing 73.4% of issued share capital.

Apollo and CVC’s 73.3% stake accounted for most acceptances.

Fairfax says it supports the Brit management’s business plan and strategy and intends to retain CEO Mark Cloutier and much of the key management team.

Fairfax Chairman and CEO Prem Watsa says the acquisition will cement his company’s underwriting business globally.

“With the acquisition of Brit, Fairfax will have a significant top-five position at Lloyd’s.”

He says UK-based Brit’s market-leading position, major presence in Lloyd’s and disciplined approach to underwriting make it a natural candidate for Fairfax’s expanding European operations and global specialty insurance platform.

The takeover offer closes on April 15.