NU Online News Service, April 25, 12:04 p.m. EDT
Policyholders and shareholders of Harleysville Mutual Insurance Co. and Harleysville Group Inc. have approved a merger with Nationwide Mutual Insurance Co.
“As partners within the Nationwide family of companies, Harleysville and Allied Insurance will establish a national independent agency distribution network, bring together a wealth of talent and expertise in the marketplace,” says Michael L. Browne, president and chief executive of Harleysville, in a statement.
Allied, a subsidiary of Nationwide, is responsible for the independent agency system of the Columbus, Ohio-based insurer.
Nationwide Mutual policyholders have approved the merger. Earlier this month, regulators in Harleysville's home state of Pennsylvania gave the go-ahead to the deal, valued at about $800 million.
Regulators in Michigan, Ohio and New Jersey still need to approve the transaction, which is expected to close during the second quarter, according to Harleysville—a super-regional insurer of small- and mid-sized businesses as well as individuals.
Pennsylvania Insurance Commissioner Mike Consedine made sure jobs didn't exit the state immediately. Part of his approval includes a stipulation that Nationwide cannot close, re-domesticate or cease business activity from Haryleysville's corporate office, or any other location, without his consent for a period of three years.
Under the terms of the deal, Harleysville Mutual will merge with Nationwide Mutual, and Harleysville Group—a publicly traded company—will become a newly-formed subsidiary of Nationwide Mutual under the terms of a deal announced last September. Public stockholders are set to receive $60 per share in cash.
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