Chinese conglomerate Wuchan Zhongda to acquire insurance group

Chinese conglomerate Wuchan Zhongda to acquire insurance group

The deal will allow Wuchan Zhongda to integration its elderly care business with low-cost insurance-based financing and strengthen the company's financial business strategy, said Wuchan Zhongda in a filing to the Shanghai stock exchange.

After the deal has been completed, Wuchan Zhongda will hold 33 percent of Sinatay Life Insurance's assets, which is pending reviews by Chinese regulators including the National Administration of Financial Regulation and State Administration for Market Regulation.

The holding company of Wuchan Zhongda Group, which is a state asset management vehicle in eastern province of Zhejiang, provides supply chain services in sectors such as commodities and automobiles. It also provides financial services, elderly care businesses, and wastewater treatment projects.

Sinatay Life Insurance, based in Hangzhou, the province capital of Zhejiang, reported a total assets of 221.8 billion yuan in the Jan-June period this year and a total liability of 220.0 billion yuan.