Singapore Blocks $1.7 Billion Allianz-Income Insurance Deal (2)

The Singapore government will block a proposed S$2.2 billion ($1.7 billion) deal by Allianz SE to buy a majority stake in a homegrown insurance firm, three months after the transaction sparked a public backlash.

The government decided it wouldn’t be “in the public interest” for the Income Insurance Ltd. deal to proceed in its current form, Minister of Culture, Community and Youth Edwin Tong told parliament on Monday. The city-state isn’t satisfied that Income can fulfill its social mission as a co-operative after the acquisition, he added.

The rare move by Singapore comes as new Prime Minister Lawrence Wong prepares ...