MG Non-Life Faces Liquidation as Meritz Abandons Acquisition

Meritz Fire & Marine Insurance has announced its decision to abandon the acquisition of MG Non-Life Insurance after facing significant opposition from the latter's labor union. MG Non-Life Insurance, previously designated as financially troubled by the Financial Services Commission and put up for sale by the Korea Deposit Insurance Corp., now faces a potential path towards liquidation or bankruptcy. This marks the fifth failed attempt to sell MG Non-Life. Meritz had been selected as the preferred bidder for a purchase and assumption (P&A) deal in December but has since forfeited its status due to disagreements on employment succession and asset-liability management. The labor union had staunchly opposed the acquisition process, demanding a merger approach instead of the proposed P&A. Despite Meritz's final offer of job guarantees and severance compensation, the proposal was rejected. With the withdrawal, government entities are now surveying the market for potential new buyers, although the prospect of liquidation looms, raising concerns for MG Non-Life's 1.24 million policyholders.