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Photo: Meritz Fire & Marine |
[Alpha Biz= Reporter Kim Sangjin] The acquisition of MG Insurance by Meritz Fire & Marine is encountering significant challenges from the start. MG Insurance has failed to provide the due diligence materials requested by Meritz Fire, and the appointed administrator from the financial authorities is unable to effectively control the company.
On the 19th, a representative from the MG Insurance union stated that Meritz Fire had requested domestic and overseas investment asset data on the 16th and 19th, but the relevant departments failed to submit the required documents. These investment materials are crucial for determining the acquisition price.
MG Insurance's refusal to submit the data is seen as an effort to hinder Meritz Fire's acquisition. Although Meritz Fire was selected as the preferred bidder for the MG Insurance acquisition on the 9th, they have not clarified their stance on employee succession. Since the Korea Deposit Insurance Corporation (KDIC) has allowed asset-liability transfer (P&A) without obligating employee retention, Meritz Fire is not bound by this commitment.
There are growing expectations that the acquisition of MG Insurance may take longer than initially anticipated. The MG Insurance union is considering filing charges against the Financial Supervisory Service (FSS) and the Financial Services Commission (FSC) for dereliction of duty, as they have delayed Meritz Fire's comprehensive inspection sanctions. The union believes that if the court acknowledges the dereliction of duty by these agencies, Meritz Fire could lose its position in the acquisition process. If the legal dispute continues, the acquisition timeline will inevitably be prolonged.
The administrators dispatched by the authorities have also lost control of MG Insurance. These administrators are supposed to take on executive roles in the acquired company and oversee the preparation and delivery of the requested due diligence materials. However, due to widespread resistance from MG Insurance staff, the administrators have been unable to attend the company and have been working from a nearby office.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
