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Manulife buys Canadian assets of Standard Life for $4 billion

A man is seen outside the Manulife Financial head office in Toronto on May 3, 2012.
A man is seen outside the Manulife Financial head office in Toronto on May 3, 2012. THE CANADIAN PRESS/Aaron Vincent Elkaim

TORONTO – Manulife Financial Corp. says it plans to buy Standard Life Oversea Holdings Ltd, a subsidiary of Standard Life plc, for $4 billion in cash.

The acquisition by a Manulife subsidiary, The Manufacturers Life Insurance Co., is expected to close in the first quarter of next year.

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Manulife president and CEO Donald Guloien says the deal “significantly builds” on the company’s capability of serving customers across Canada and elsewhere in the world from Quebec.

In addition, Guloien said that exluding transition and integration costs, that deal should – after the first year – add three cents per share of earnings over the next three years.

He added that the deal and its financing maintain the company’s strong capital position and would “in no way inhibit our ability to pay dividends.”

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