The merger agreement stipulates that each share of Corebridge common stock will be exchanged for one share of the new parent company's common stock, while each share of Equitable common stock will be exchanged for 1.55516 shares of the new parent company's common stock. Following the merger, Corebridge shareholders will own approximately 51% of the combined entity, while Equitable shareholders will hold about 49%.
Both companies have expressed confidence in the merger's potential to generate significant synergies, with expectations of over $500 million in annual pre-tax expense synergies by the end of 2028. The transaction is anticipated to be immediately accretive to earnings per share and cash generation, with projections indicating an increase of over 10% in these metrics by the end of 2028.
The boards of directors of both companies have unanimously approved the merger, which is expected to close by year-end 2026, subject to customary closing conditions, including regulatory approvals and shareholder votes. The combined company will operate under the Equitable name and brand, with Marc Costantini, the current CEO of Corebridge, serving as the CEO of the new entity.
This merger represents a strategic move to capitalize on the strengths of both organizations, enhancing their competitive positions in the financial services industry. The integration is expected to provide a robust platform for growth, leveraging the combined resources and expertise of both companies to better serve their clients and deliver long-term value to shareholders.
