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Dai-ichi Life to Buy U.S. Protective for $5.7 Billion

Dai-ichi Life Insurance Co. will buy Protective Life Corp. for about 582.2 billion yen ($5.7 billion) to expand into the faster-growing U.S. market, marking the biggest foreign acquisition by a Japanese life insurer.

Dai-ichi, Japan’s second-largest life insurer, will pay $70 per share in cash for Birmingham, Alabama-based Protective Life, a 34 percent premium over Protective’s closing stock price of $52.30 on May 30, according to a joint statement from the two companies. Dai-ichi Life will sell up to 250 billion yen of shares to fund the acquisition, a separate filing in Tokyo by the Japanese insurer showed. Dai-ichi’s stock had the biggest advance in seven weeks following the announcement.