Harleysville, Nationwide to move forward with proposed mergerPosted On: Apr. 25, 2012 12:00 AM CST
HARLEYSVILLE, Pa.—Harleysville Mutual Insurance Co. and Harleysville Group Inc. announced Wednesday that their policyholders and shareholders, respectively, have voted to approve the adoption of the proposed merger with Nationwide Mutual Insurance Co.
Columbus, Ohio-based Nationwide entered into a definite agreement to acquire Harleysville, Pa.-based Harleysville last September in order to expand Nationwide’s commercial insurance reach. Nationwide’s policyholders approved the deal, under which Harleysville will become a wholly owned subsidiary of Nationwide, this month.
Under the terms of the agreement, Harleysville Mutual policyholders will become policyholders and members of Nationwide Mutual, and Nationwide will acquire all of the publicly held shares of common stock of Harleysville Group for $60 per share in cash.
The deal has been approved by the Pennsylvania Department of Insurance but still must win the approval of regulators in some other states. The transaction is expected to close in the second quarter.
“The combination of Harleysville and Nationwide represents a strong strategic business fit that makes sense for both organizations,” said Michael L. Brown, Harleysville’s president and CEO, in a statement.