Meritz Financial Group (KRX:138040) subsidiary Meritz Fire & Marine Insurance abandoned its bid to acquire MG Non-Life Insurance, citing opposition from the latter's labor union, Pulse News reported Friday.
The Korea Deposit Insurance Corp. (KDIC) selected Meritz Fire & Marine Insurance as the preferred bidder but Meritz withdrew due to unresolved disputes. Following Meritz Fire & Marine Insurance's exit, regulators, including the Financial Services Commission and the Financial Supervisory Service, raised concerns over MG Non-Life's viability, the report said.
With previous failed attempts to sell MG Non-Life Insurance and over 10,000 policyholders at risk, KDIC plans to seek another buyer. However, prospects for the same remain uncertain, it said.
Shares of Meritz Financial Group rose more than 1% in recent trade on Monday.
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