China Taiping Insurance Holdings Co. Ltd. is said to have backed out of discussions to acquire the noncore operations of Australian financial services company AMP Ltd., The Australian reported March 21.
UBS Group AG was working with the Chinese insurer regarding the potential sale, but the Chinese company reportedly thought that if it proceeded with the acquisition, the deal was likely to be barred by Australia's Foreign Investment Review Board, the report said.
In September 2017, AMP was reportedly in discussions with China Taiping Life Insurance (Hong Kong) Co. Ltd. for the sale of its life insurance unit, AMP Life Ltd. Meanwhile, in November 2017, Australia-based Challenger Ltd. was also said to be interested in purchasing the life insurance division.
In February, U.S.-based American International Group Inc. and Hong Kong's AIA Group Ltd. were reported to be mulling over the acquisition of AMP's assets, including its life insurance, wealth management and New Zealand operations. China Life Insurance Co. Ltd. was also said to be in talks to acquire up to A$3 billion worth of life insurance assets from AMP.
Further, AMP was also reportedly considering an IPO or demerger of its New Zealand business, which is said to be worth about A$1.87 billion.