Mutua Madrileña and El Corte Inglés have closed their strategic alliance, having obtained all the pertinent authorisations. The agreement implies the sale of the El Corte Inglés insurance business to Mutua Madrileña, specifically the sale of a 50.01% interest in each of its two insurance companies, SECI and CESS. In addition, Mutua is taking a direct shareholding in El Corte Inglés.
The transaction, agreed and announced last October, was sealed on May 31, having obtained all the required authorisations, including those of Spain’s insurance sector watchdog, the DGSFP, and its anti-trust authority, the CNMC. In tandem, El Corte Inglés has taken receipt of the corresponding payments: €550m for the insurance business and €555m for 8% of El Corte Inglés’ shares.
This strategic alliance will allow Grupo Mutua expand its distribution channels and access El Corte Inglés’ extensive customer base, currently reached through over 2,000 points of sale in Spain, Portugal and other international locations. The retail group’s stores receive over 700 million in-person visits a year and its online channels around 500 million visits, making it one of Spain’s largest online retailers. The agreement provides El Corte Inglés’ customers with a better and more comprehensive and personalised insurance offering.
The agreement also . In recent months the retail group has completed a number of important transactions on both the business and corporate fronts in order to boost its execution.
Mutua Madrileña’s decision to make an equity investment in El Corte Inglés bolsters the relationship and cooperation between the two Spanish firms, which have customer service excellence and customer journey track records in common. Both groups intend to retain all their staff.
The Uría Menéndez´s M&A-Private Equity team advising ECI was formed by partner Javier Ruiz-Cámara counsel Jaime del Fraile (M&A and Insurance, Madrid), senior associate Clara Muñoz and associate Yulia Kalyuzhyna.
