By Adria Calatayud

RSA Insurance Group PLC said Wednesday that it has agreed to a takeover offer from Intact Financial Corp. and Tryg AS which values the FTSE 100 insurer at 7.2 billion pounds ($9.54 billion) in cash.

Under the deal, Intact will retain RSA's Canadian, U.K. and international operations, while its Scandinavian business will be separated. Tryg will retain RSA's Swedish and Norwegian businesses, and Intact and Tryg will co-own RSA's Danish business with each holding a 50% interest.

RSA said its shareholders will be entitled to receive 685 pence in cash, which represents a 51% premium to its closing price of 460 pence a share on Nov. 4, the last business day before a possible offer by Intact and Tryg was disclosed.

Tryg will contribute GBP4.2 billion and Intact will make a GBP3.0 billion contribution, the companies said.

Intact and Tryg said their respective boards believe that their combinations with RSA's businesses will be strategically compelling to all stakeholders and offer opportunities to accelerate their strategic objectives.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

11-18-20 0234ET