Close up of businessman hands making handshake - greeting, dealing, merger and acquisition concepts

Brookfield Reinsurance has signed a deal to buy the part of American Equity Investment Life Holding Co. (AEL) that it does not already own in a cash-and-stock transaction that values the company at about US$4.3 billion.

The deal will see AEL shareholders receive US$55 per share, including US$38.85 in cash and 0.49707 of a Brookfield Asset Management Ltd. class A limited voting share.

Brookfield Reinsurance will acquire the Brookfield Asset Management (BAM) shares required to pay the non-cash portion of the offer from Brookfield Corp.

The transaction will reduce Brookfield Corp.’s stake in BAM to about 73% from 75%.

Brookfield, which first proposed its offer last week, already holds about a 20% stake in AEL.

The deal is expected to close in the first half of 2024, subject to AEL shareholder approval and other closing conditions including regulatory approvals.