The 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 company, while Equitable shareholders will hold about 49%.
Mark Pearson, President and CEO of Equitable, expressed excitement about the merger, highlighting the transformational potential of combining the two companies. He noted that the merger would enhance the ability to deliver a broader range of investment and retirement solutions to clients. Marc Costantini, President and CEO of Corebridge, echoed these sentiments, emphasizing the strong competitive position and accelerated growth opportunities that the merger would create.
The merger is expected to be immediately accretive to earnings per share and cash generation, with anticipated synergies exceeding $500 million by the end of 2028. The combined company will also benefit from a robust balance sheet and consistent cash generation, enhancing financial flexibility to invest in strategic growth initiatives while returning capital to shareholders.
The transaction is subject to customary closing conditions, including regulatory approvals and shareholder votes, with an expected completion date by year-end 2026. Both companies plan to hold a special meeting for shareholders to vote on the merger, deferring their respective 2026 annual meetings to accommodate this process. The merger represents a significant strategic move in the financial services sector, aiming to create a diversified platform that can better serve customers and drive shareholder value.
