Zurich ditches £5.6bn RSA bid

Zurich building 480

Zurich has been forced to pull out of a £5.6bn takeover of RSA.

The Swiss firm announced a bid in July, but it has pulled out at the last minute blaming a $275m (£176m) hit resulting from explosions in the Chinese port of Tianjin , the Telegraph reports.

An RSA statement says: “Zurich has confirmed to RSA that the due diligence findings were in line with their expectations and, while the process had not been finally concluded, they had not found anything that would have prevented them from proceeding with the transaction on the terms announced on 25 August 2015.

“As a result of recent deterioration in the trading performance of Zurich’s General Insurance business, Zurich has terminated discussions with RSA regarding a possible offer.”

A preliminary update on third quarter trading shows the firm’s general insurance division is likely to report an operating loss of $200m.