The California Department of Insurance has approved the acquisition of Los Angeles-based medical malpractice insurance provider SCPIE Holdings Inc. by a Northern California competitor.
SCPIE shareholders in March approved a deal that would turn the company into a wholly owned subsidiary of Napa-based Doctors Co. Regulators were examining whether the acquisition would shrink competition and raise premiums in the state’s medical malpractice insurance industry.
Late Thursday, the state released a statement approving the deal, saying, “Doctors’ acquisition of SCPIE would not substantially lessen competition in insurance in California.”
Under the deal, Doctors will acquire SCPIE for $28 per share for an aggregate purchase price of $281 million. Shares of SCPIE were trading at $27.96 Friday afternoon.
The deal is expected to close on Monday, at which point SCPIE will be delisted from the New York Stock Exchange.