British insurance company Prudential says it will buy the Asian unit of U.S. insurer AIG for $35 billion, allowing AIG to repay some of the money it owes U.S. taxpayers.
Prudential announced its proposed takeover of AIG's AIA Group Monday, saying the deal will make the British company the largest insurer in Southeast Asia.
Prudential says AIG will get $25 billion in cash and $10 billion in new Prudential shares in return for AIA. The deal is subject to approval by shareholders and regulators.
AIG says it will use the funds to repay some of the $180 billion it received in a U.S. government bailout in 2008 during the height of the global financial crisis.
Prudential already has a significant presence in Asia's insurance market. Its chief executive Tidjane Thiam said Monday he sees Asia as the "engine" of the group's future growth.
Some information for this report was provided by AFP, AP and Reuters.