unit on April 4received the required regulatory approval from the Romanian FSA to local insurerCredit Europe AsigurariReasigurari SA.
"Theentry of an investor of such caliber in the general insurance market [ofRomania] confirms the positive direction of developments taking place inRomanian insurance," the regulator said in a statement issued the same day.
Thetakeover is Romania's first general-insurance deal involving a high-profileinternational investor since the start of the financial crisis, the FSA added.
TheFSA said ERGO would buy 100% of the shares in Credit Europe AsigurariReasigurari through its subsidiary ERGO Austria International AG.
ERGOstarted investing in Romania in 2009, through the life business , theFSA said. The regulator added that ERGO was one of three global insurersinterested in purchasing troubled Astra Asigurari but pulled out after Astra shareholdersmade "unreasonable demands."