The European Commission (EC) has approved the acquisition of Chaucer Group by China Reinsurance  Group (China Re).

The transaction is valued at around US$865 million, and includes UK-based Hanover Insurance International, Ireland-based Chaucer Insurance Designated Activity Company, and Hanover Australia Holdco, reported Xinhua. It was first announced in September 2018.

Chaucer is active globally, providing reinsurance, non-life insurance, and specialty insurance, focusing on the Lloyd’s insurance market. Meanwhile, China Re provides property & casualty reinsurance and insurance, life and health reinsurance, and asset management.

“The proposed transaction gives rise to horizontal overlaps between the companies’ activities, but the Commission concluded that it would raise no competition concerns given the companies’ limited combined market positions resulting from the proposed acquisition,” the EC said in a statement.

An earlier statement by China Re outlined that the acquisition of Chaucer will improve its underwriting and technical expertise, as it seeks to diversify its portfolio. The China-based reinsurer added that the two companies’ portfolios are complementary in terms of territory and business offerings.