Brookfield shareholders approve merger of parent and insurance arm

Shareholders of Brookfield Corporation, a Toronto-based investment firm, and its insurance arm, Brookfield Wealth Solutions, have approved combining the two, Yahoo Finance reported. Brookfield said on May 26, when its boards approved the deal, that it would leave one company, Brookfield Corporation Ltd., listed in Toronto and New York as BN. Brookfield says the aim is to let the insurance business draw on about $145 billion of permanent capital held by Brookfield Corporation: cash, equities, real estate and other investments.

The deal runs through a plan of arrangement, which needs the votes of each company’s shareholders and a court’s approval. Under it, class A shares of both companies will be swapped one-for-one for shares of the new company.

Simplifying is an old aim for the company. In 1997 Robert Harding, Edper’s president, called the Edper-Brascan merger a continuation of a simplification effort begun in 1993. Brascan, the company’s earlier name, blended “Brasil” and “Canada”, reflecting its Brazilian utility origins.

Shareholder approval is in, but the deal is still expected to close only in late 2026, subject to regulatory approvals and customary conditions.

Sources: Yahoo Finance · Brookfield Corporation · Wikipedia