An Australian conglomerate is purchasing one of the nation'slargest publicly owned insurance brokerage firms for more than $500million.

Wesfarmers, a multi-interest conglomerate, said it wouldpurchase OAMPS for $700 million Australian (U.S. $535 million atcurrent exchange rate). The deal involves a cash offer of $4.50($3.44) per share of OAMPS stock.

In statements, the companies said the board of OAMPS unanimouslyrecommended accepting the offer in the absence of a superiorproposal.

OAMPS was founded in 1976 as the Oil Agents Mutual ProvidentSociety, according to the companies Web site. It has a total of 28offices, one in England, the remainder in Australia. The companyspecializes in difficult to place risks with the ability to offerto in-house broking, underwriting, premium financing, and otherfinancial products and services.

Wesfarmers, headquartered in Perth, Australia, was founded in1914 as a farmer's co-operative. The company's insurance divisionwas founded in 2003 after it acquired Edward Lumley Holdings. Thedivision is comprised of three general insurance companies, twopremium funding businesses and an insurance software developer.

In addition to insurance, Wesfarmers operates a retail hardwarebusiness, and has other interests in six other industries.

The companies said the agreement calls for OAMPS brokeragedivision to operate separately from Wesfarmers' underwritingbusiness “to maintain its independence in the market.”

Wesfarmers said its insurance division, under the combinedcompanies, would have pro forma 2006 gross sales of $2.1 billion($1.6 billion).