Corebridge Financial, Inc. (CRBG) stock jumped on Thursday after the U.S.-based retirement solutions and insurance products company announced a merger agreement with Equitable Holdings (EQH). The two companies have agreed to combine in an all-stock merger that will create a leading retirement, life, wealth and asset management company worth approximately $22 billion.
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Corebridge Financial, Inc. and Equitable Holdings highlighted several benefits from this merger:
- Creates a Leading U.S. Retirement, Life, Wealth and Asset Management Platform
- Expands Origination Capabilities Across All Asset Classes
- Unites Two Customer-Centric Organizations with a Shared Vision
- Creates Superior Financial Profile with Increased Cash Generation
- Combines Two Strong Balance Sheets and Enhances Financial Flexibility
- Immediately Accretive to Earnings Per Share and Cash Generation
- Realizes Meaningful Synergies
Marc Costantini, President and CEO of Corebridge Financial, Inc., said, “Together, we will continue to support financial professionals and institutions in helping individuals plan, save for and achieve secure financial futures. Importantly, upon closing, this transaction is expected to deliver compelling value to shareholders, including immediate accretion to earnings per share and cash generation, increasing to over 10% by the end of 2028.”
Details of the Deal
Corebridge Financial, Inc. and Equitable Holdings will merge to create a new parent company. Each share of CRBG stock will be exchanged for one share of the new company, while each share of EQH stock will be exchanged for 1.55516 shares of the new company. This will result in CRBG shareholders owning 51% of the combined company, with the remaining 49% owned by EQH shareholders.
CRBG and EQH Stocks Jump Today
Corebridge Financial, Inc. stock was up 1.57% on Thursday but was still down 17.42% year-to-date. The shares have also fallen 25.01% over the past 12 months.
Equitable Holdings stock gained 1.68% on Thursday but was down 17.97% year-to-date. The shares have also decreased 28.35% over the past 12 months.
Are CRBG and EQH Stocks Worth Buying?
Turning to Wall Street, analysts have bullish ratings for Corebridge Financial, Inc. and Equitable Holdings. CRBG stock has a consensus Moderate Buy rating and a potential 50.62% upside, while EQH stock has a consensus Strong Buy rating and a possible 54.37% upside.
