$11 billion deal for John Hancock

Manulife Financial Corp., Canada’s third largest insurer, Sunday said it agreed to buy life insurer John Hancock Financial Services Inc. for about $10.8 billion, expanding its operations in the United States.

Under the terms of the deal, John Hancock shareholders will receive 1.1853 Manulife common shares for each John Hancock share.

The combined entity will earn cost savings of $255 million after three years and will boost Manulife’s net income from next year, it said.

The deal had been rumored for some time and resulted in heavy trading in the two companies’ shares on Friday.

Manulife Chief Executive Dominic D’Alessandro, who is not related to John Hancock CEO David D’Alessandro, has said in the past that Manulife is looking for acquisition opportunities in the United States.

Manulife’s D’Alessandro will be president and chief executive officer of the combined entity, which is valued at $25.6 billion (C$34.7 billion.) Hancock’s D’Alessandro will become chief operating officer and president of Manulife when the deal is completed.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

Once Canada’s No.1 insurer, Manulife been forced to the sidelines over the past year as the Canadian insurance sector saw a heavy bout of consolidation.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

First, Sun Life Financial Inc. snapped up Clarica Life Insurance Co., considered a plum among smaller Canadian insurers. Then Manulife attempted to buy Canada Life, but lost out to rival Great-West Lifeco.

Manulife had also reportedly held merger talks with Canadian Imperial Bank of Commerce last year, but a potential deal was said to be scotched by the government.

Manulife shares fell C$1.35 to C$40.85 on the Toronto Stock Exchange on Friday. Shares of Boston, Massachusetts-based John Hancock jumped $2.25, or 7 percent, to $34.30 on the New York Stock Exchange amid speculation of a pending sale.