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InsideArbitrage Potential Deal Alert: Brookfield Reinsurance (BNRE) Nears Deal to Buy American Equity (AEL)

  • June 27, 2023


StockAmerican Equity Investment Life Holding CompanySymbolAEL
Date Announced06/26/2023Source Bloomberg
TypeUnsolicited BidAcquiring Company/Person Brookfield’s reinsurance arm
Date of Confirmation: 07/05/2023Price at Confirmation: $52.78
Potential Profit: 17.03%Annualized Profit: 690.61%

According to Bloomberg, Canadian investment giant Brookfield Reinsurance arm (BNRE) is nearing a deal to acquire insurance firm American Equity Investment Life Holding (AEL).

Previously, On December 8, 2022, the American Equity Investment Life Holding Company Board of Directors received an unsolicited, non-binding, and opportunistic proposal from Prosperity Group Holdings LP and its principal shareholder, Elliott Investment Management L.P. to acquire American Equity in an all-cash transaction at $45.00 per share.

The Board rejected the proposal on December 12, 2022. On December 19, 2022, the Board received a second letter from the same parties restating the same price and economic terms. The Board reiterated its rejection on December 20, 2022.

On February 21, 2023, Prosperity withdrew its proposal to acquire American Equity for $45 per share stating “Given American Equity’s refusal to engage and desire to proceed only on a constructive basis, Prosperity has no interest in continuing to pursue our proposed transaction at this time.”


June 27, 2023: Brookfield Reinsurance (BNRE) submits proposal to acquire American Equity Investment Life Holding (AEL) for $4.3 billion.

Brookfield Reinsurance (BNRE) put forth a proposal to acquire all of the outstanding shares of common stock of AEL not already owned by Brookfield Reinsurance for aggregate consideration of $55.00 per AEL share.

July 5, 2023: American Equity Investment Life Holding Co. (AEL) accepted a $4.3 billion cash and stock takeover bid from an arm of Canadian investment giant Brookfield (BNRE)

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.