Austria’s VIG to Buy Rival Nuernberger for €1.4 Billion (1)

Vienna Insurance Group AG agreed to buy German rival Nuernberger Beteiligungs AG in a €1.4 billion ($1.6 billion) deal, making it the Austrian company’s biggest acquisition.

VIG will pay €120 per share in cash for the insurer, according to a statement on Thursday. The transaction will help VIG diversify its portfolio of eastern European insurers with a well-known brand in Germany.

Shares of Nuernberger, which traded at roughly €52 before VIG’s interest became public on Aug. 8, have surged more than 120% since, and last traded at around €118.50 on Friday. VIG’s shares fell as much as 5.7% in Vienna, ...