Shareholders of Compa­a Espaola de Seguros y Reaseguros de Crdito y Caucin and of Atradius have agreed to the terms of the combination of the two businesses. Under the terms of the agreement, Crdito y Cauci, based in Madrid, will become part of the new Atradius Group. The headquarters of the new group will be based in Amsterdam.

The transaction will create a global group with 160 offices in over 40 countries and an insured trade turnover of over €450bn. Its pro forma annual turnover will be over €1.6bn and its equity over €1bn.

The combination is subject to the approval of various authorities, including insurance regulators and anti-trust authorities.

Peter Ingenlath, acting CEO of Atradius, comments: “Atradius and Crdito y Caucin have long maintained an alliance that has strengthened both companies. The combination of these two organisations cements our commitments to profitable growth and will enable us to build up our global presence more effectively and enhance our market position. Together, we will become the most professional and attractive credit insurer in the industry”.

The shareholder structure of the new group will change after the combination of Atradius and Crdito y Caucin. On completion, all shares in Atradius held by Crdito y Caucin and Seguros Catalana Occidente will be transferred to a newly created holding company, Grupo Crdito y Caucin.

In addition, new shares in Atradius will be issued in consideration for the transfer of Crdito y Caucin to Atradius, as a result of which the Spanish holding company will become the largest shareholder of Atradius with a 64.2% stake.

Swiss Re will have a 25% stake, Deutsche Bank a 9.1% stake and Sal Oppenheim & Cie KGaA a 1.7% stake.

Isidoro Unda, currently CEO of Crdito y Caucin, will become the CEO of the new group once the relevant approvals have been granted. After completion, the management of the new group will prepare for an initial public offering of the combined group in the medium term.