Shinhan given go ahead to acquire Orange Life

The Financial Service Commission (FSC) on Wednesday gave Shinhan Financial Group the green light to go ahead with its acquisition of Orange Life Insurance, formerly ING Life Insurance.

The FSC said after reviewing Shinhan Financial Group’s business, investment and management plans, it decided to approve the life insurance company becoming an affiliate of Shinhan.

In September, Shinhan Financial Group signed a sales and purchase (SPA) agreement with Orange Life Insurance to buy a 59.15 percent stake for 47,400 won ($42) per share, which translates to 2.3 trillion won.

Shinhan Financial Group plans to finish the acquisition by November this year. Once the acquisition is complete, the life insurance firm will become Shinhan’s 14th affiliate, further strengthening the group’s nonbanking financial services.

Earlier this week, Woori Financial Group officially regained its holding company status, which it lost in 2014, and vowed to aggressively pursue M&As. Rival KB Financial Group has also introduced a similar strategy.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]