TAIPEI (Taiwan News) — E Sun Financial Holding on Monday declined to comment on market rumors that it plans to acquire Mercuries Life Insurance, saying any merger, division, acquisition, or share transfer will be disclosed only after a board resolution.
Reports suggest E Sun may have offered NT$8.2 (27 cents) per share to acquire Mercuries Life, outbidding CTBC Financial Holding in a deal valued at more than NT$48 billion. The lack of official disclosure caused notable share price swings for both companies on Monday, drawing attention from the Financial Supervisory Commission and the Taiwan Stock Exchange, according to CNA and UDN.
The commission said whether E Sun must make a public disclosure depends on its internal compliance review and applicable regulations. The Taiwan Stock Exchange confirmed it is in contact with E Sun to determine if a major information announcement is required.
Analysts say the acquisition would align E Sun with a broader industry trend of financial holdings operating both banking and insurance businesses. Among private financial holdings earning NT$20–50 billion annually, only E Sun and SinoPac currently lack a life insurance subsidiary, according to CTEE.
Acquiring Mercuries Life could fill this gap, strengthen E Sun’s insurance portfolio, and potentially boost profitability and total assets. The deal could move E Sun from the tenth- to sixth-largest financial holding company in Taiwan.
Mercuries Life has NT$1.55 trillion in assets. Although the company has faced past losses from interest-rate gaps, mismanagement, and major investment setbacks, analysts say E Sun could boost performance by addressing these issues, according to CTEE.
Analysts noted that, despite a relatively high acquisition price, the strategic benefits could justify the deal.
On Monday, Mercuries Life hit its daily trading limit, closing at NT$7.39 per share with over 180,000 lots, or 180 million shares, traded. E Sun shares fell 7.2% to NT$30.3, with foreign investors selling more than 112,000 lots.
Institutional investors said short-term concerns, such as potential impacts on dividend payouts, may affect sentiment. However, many funds and high-dividend exchange-traded funds holding E Sun shares are expected to maintain positions.
Decisions will likely hinge on the board’s review and subsequent disclosure of detailed acquisition plans and operational strategies.
E Sun emphasized that its statement was intended to clarify media reports, not announce investment details. The company reiterated that information on mergers, acquisitions, or share transfers will be released following board approval, in line with regulations for public company transactions.
