Nationwide Mutual Insurance Company has announced that it will expand its holding in Nationwide Financial Services, Inc. and NFS will become a wholly owned subsidiary of Nationwide.

The Columbus, Ohio-based insurer said it will acquire all of the outstanding publicly held NFS Class A common stock for $52.25 per share in cash.

Nationwide put the value of the transaction at approximately $2.4 billion and said it is expected to close by the end of 2008 or early in 2009, subject to shareholder and regulatory approval.

Currently Nationwide said it owns all of the outstanding NFS Class B common stock, which represents 66.3 percent of the equity ownership, and 95.2 percent of the combined voting power of the shareholders of NFS.

Jerry Jurgensen, Nationwide chief executive officer, said in a statement: "Combining the organizations will allow the Nationwide brand to set itself apart from the competition by aligning our entire product and service portfolio around the customer.

"A simpler ownership structure will open new opportunities for stronger top-line growth by attracting new customers as well as retaining current customers with a broad and integrated product offering."

Mr. Jurgensen added that the move will also "facilitate more effective deployment of capital across the enterprise, putting more assets to work where they can deliver the best value for customers."

In a conference call, Mark Thresher, president and chief operating officer of NFS, said that simplifying the ownership is good for customers, business partners and associates.

The company noted that Nationwide and certain of its affiliates have agreed to vote all of their NFS shares in favor of the transaction, assuring that shareholder approval will be obtained.

Special Reports /

Nationwide, NFS To Combine Under Acquisition Plan

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