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Meritz Securities headquarters. (Photo = Meritz Securities) |
[Alpha Biz= Kim Jisun] The Korea Deposit Insurance Corporation (KDIC), which is in the process of selling MG Non-Life Insurance, has selected Meritz Fire & Marine Insurance as the preferred bidder. However, it has been confirmed that follow-up discussions on the details of the deal have been suspended.
According to financial industry sources, KDIC's practical team responsible for the sale of MG Non-Life Insurance has not been able to enter into detailed negotiations on the terms with Meritz Fire & Marine. Additionally, reviews of support measures such as the disposal of MG Non-Life’s non-performing assets have also been halted.
With the term of KDIC President Yoo Jae-hoon set to expire in November next year, there are concerns that political circumstances are influencing the M&A process.
On the other hand, Meritz Fire & Marine Insurance, as the preferred bidder, plans to proceed with the designated steps despite the lack of detailed negotiations. Recently, Meritz Fire & Marine, along with Samil Accounting Corporation, has begun a thorough due diligence process for MG Non-Life, which is expected to take about two months.
However, there is strong opposition from labor unions. The unions are protesting after reports that Meritz Fire & Marine plans to retain only about 50 to 60 employees, roughly 10% of the current staff. On the 16th, the MG Non-Life union held a rally in front of KDIC's headquarters, demanding the withdrawal of Meritz Fire & Marine's status as the preferred bidder.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
