Aquarian Holdings in Exclusive Talks to Acquire Brighthouse Financial, BHF Shares Rise

Brighthouse Financial (BHF) shares rose 10% after the Wall Street Journal reported Aquarian Holdings is in exclusive talks to acquire the insurance company. Brighthouse provides life insurance and annuity products via independent advisors and brokerage channels. Aquarian is a holding company backed by RedBird Capital and Abu Dhabi's Mubadala, investing in insurance and asset management businesses. A deal could be finalized in the next few weeks, with analysts holding mixed opinions on BHF stock.

Brighthouse Financial (BHF) shares experienced a significant uptick of 10% after The Wall Street Journal reported that the company is in exclusive talks to be acquired by the investment firm Aquarian. The stock, which had been down about 2% this year, climbed to $52.25 in after-hours trading on Tuesday. The report suggests that the acquisition could be finalized in the coming weeks [1].

Brighthouse Financial, spun out of MetLife in 2017, specializes in life insurance and annuity products, distributed via independent advisors and brokerage channels. The company has a market value of approximately $2.8 billion. Aquarian, a holding company backed by RedBird Capital and Abu Dhabi's Mubadala, manages $22.8 billion in assets and invests in insurance and asset management businesses [1].

The acquisition process had drawn interest from several major private-equity firms, including TPG, which was pursuing a structured deal involving only certain parts of Brighthouse rather than a full purchase. However, TPG was unable to reach an agreement and did not submit a final bid [2]. The Wall Street Journal report indicates that the Aquarian acquisition marks the conclusion of a competitive bidding process.

Analysts have expressed mixed opinions on the potential impact of the acquisition on BHF stock. While some see it as a positive development that could bring strategic value to the company, others are cautious about the potential risks and uncertainties associated with such a significant transaction.

The potential acquisition by Aquarian could have significant implications for the insurance industry, potentially reshaping the competitive landscape and influencing market dynamics. Investors and financial professionals are closely monitoring the situation as more details about the acquisition emerge.

References:
[1] https://www.marketwatch.com/story/brighthouse-financial-shares-up-on-wall-street-journal-report-of-aquarian-acquisition-3db02e31
[2] https://au.investing.com/news/stock-market-news/brighthouse-financial-stock-surges-after-wsj-report-on-potential-aquarian-deal-3927999