Status: Post-Closing Mitigation Likely

Acquirer:  Fosun International Limited (Hong Kong SAR, China)

Acquired:  Ironshore, Inc. (US)

Value:  US$1.84 billion

Industry:  Insurance

UPDATE: On May 1, 2017, Liberty Mutual Insurance announced that it had “completed its acquisition of 100 percent ownership interest in Ironshore Inc., a premier global specialty company, from Fosun international Limited following receipt of regulatory approvals and satisfaction of customary closing conditions.  Liberty’s purchase price equates to $2.935 billion and is subject to post-closing adjustments.” (Liberty Mutual Insurance Press Release, Liberty Mutual Insurance Completes Acquisition of Ironshore Inc. from Fosun International Limited, May 1, 2017.)  The sale follows a post-closing CFIUS review of Ironshore’s initial acquisition by Fosun International in 2015.  (See Fosun Press Release, June 4, 2016.)

Fosun International Limited (referred to commonly as “China Fosun Group”) completed the acquisition of Ironshore Inc., a U.S. based insurance and investment company, in November of 2015 (see Fosun International Press Release, Nov. 23, 2016).  Shortly thereafter, Fosun was approached by CFIUS over concerns about Ironshore’s subsidiary Write USA that provides insurance coverage to federal employees.  (See Reuters, RPT-INSIGHT-U.S. watchdog expands scrutiny to more Chinese deals, October 11, 2016 (noting Fosun was approached in December 2015); Insurance Journal, U.S. Treasury Unit Reviews Fosun’s Acquisition of Ironshore, June 8, 2016.)  News reports indicated speculation about access to federal employee data “following the hack last year of employee records held at the Office of Personnel Management,” and that the parties have voluntarily filed a joint notice to the Committee on Foreign Investment in the United States (CFIUS).  (Id.; Fosun Press Release, June 4, 2016 (stating “Fosun and Ironshore have voluntarily notified CFIUS regarding Fosun’s acquisition of Ironshore,”))  In September, the same trade publication reported that Wright USA was divested to Starr International Co., Inc., apparently quelling any concerns.  (See Insurance Journal, Starr Buys Wright USA from Ironshore, Subsidiary of China’s Fosun, Sept. 26, 2016.)  Reports indicated that Fosun International sought to sell Ironshore to Liberty Mutual for approximately US$3 billion.  (See Insurance Journal, Liberty Mutual to Acquire Ironshore from China’s Fosun for $3 Billion, December 5, 2016.)