KBC Group buys majority stake in DZI Insurance

SOFIA, Bulgaria—Belgian banking and insurance group KBC Group N.V. has completed its acquisition of a majority stake in Bulgaria's leading nonlife and life insurer DZI Insurance and Reinsurer A.D., the companies announced Friday.

After receiving all the regulatory approvals, KBC said it had finalized the acquisition of a 70% stake in DZI at a pricetag of €185 million (US$ 255 million). KBC said it would soon launch a public takeover bid for the outstanding 30% of DZI shares.

"KBC has been quick to respond to Bulgaria's entry into the European Union (January 1, 2007), becoming the first Belgian investor in the Bulgarian financial sector," said André Bergen, KBC Group CEO, in a statement. "KBC considers DZI Insurance to be a unique platform to start building a long-term presence in this promising market."