May 3 (Bloomberg) -- Banco Sabadell SA agreed to buy Aegon NV’s stake in a life-insurance joint venture with Caja de Ahorros del Mediterraneo for 449.5 million euros ($589 million).
The Dutch insurer, based in The Hague, will sell its 50 percent stake in the life-insurance partnership originally concluded with CAM after previously exiting joint ventures with Banca Civica SA and Unnim Banc SA, it said in a statement today. Sabadell agreed to acquire CAM in 2011 after the savings bank was seized by the Bank of Spain as souring property loans wrecked its business.
The sale, expected to close in the third quarter, completes Aegon’s restructuring in Spain with total proceeds of 1 billion euros, the company said. Aegon revisited its joint ventures in the country after Spain’s banking bailout last year led to mergers of savings banks, or cajas.
The company, the owner of U.S. insurer Transamerica Corp., retains a presence in the Spanish market through two joint ventures with Banco Santander SA. Spain’s biggest bank will create life-insurance and non-life units in which Aegon will take 51 percent stakes, the companies said in December. Under the 25-year deal, Santander will market the insurance products through its branch network in Spain.
Aegon will also continue to sell its products through branches of Liberbank SA and Caja Badajoz as well as via agents.
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