Brookfield Reinsurance may soon own American Equity

American Equity Investment Life Holding (NYSE: AEL) ended about 15% up after Brookfield Reinsurance Ltd (TSE: BNRE) said it was willing to buy the annuity provider for $4.3 billion.

Analysts’ view on the Brookfield-AEL deal

The proposal translates to $55 a share, of which, the Canadian investment giant wants to pay $38.85 in cash and the remaining in stock.

According to analysts at Truist Securities, the deal, if it indeed materialises, is unlikely to face antitrust concerns.

Brookfield expects the acquisition to boost its overall assets under management to about $900 billion. Its shares also ended in the green today.

American Equity is reviewing the proposal

In its press release, American Equity confirmed that its board will review the proposal with advisers and won’t make any further comments until then.

Brookfield, though, wants to sign a definitive agreement by the end of this week. With about a 20% stake, it’s already the largest shareholder in the New York listed firm. In a statement today, the Canadian firm said:

Last December, American Equity rejected a $45 per share unsolicited proposal from Elliott Investment-backed Prosperity Life Insurance Group. Wall Street currently rates it at “overweight”.