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State Auto Triples on Pact to Be Acquired by Liberty Mutual

Liberty Mutual agreed to acquire State Auto for $52 cash a share. That would value State Auto at about $2.3 billion.
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State Auto Financial  (STFC) - Get State Auto Financial Corporation Report shares on Monday went gangbusters after the auto insurer agreed to be acquired by insurer Liberty Mutual for $52 a share.

That would value State Auto, Columbus, Ohio, at about $2.3 billion, judging from Yahoo data. 

The stock nearly tripled on Monday, recently trading at $49.92 against Friday's close at $17.26. It has traded on Monday as high as $50.24. In 2021 through Friday's close, the stock had slipped 2.7%. 

“Through the deal, Liberty Mutual will add $2.3 billion in premium and State Auto's network of approximately 3,400 independent agencies across 33 states and is expected to become the second largest carrier in this key distribution channel,” the companies said.

State Auto mutual members will become mutual members of Liberty Mutual, which says it’s the sixth-largest auto and home insurer in the country. 

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The deal is expected to close in 2022, pending conditions including Botes by State Auto Mutual members and State Auto Financial shareholders, regulatory clearances and other matters.

In other auto news Monday, Chinese electric vehicle company  (NIO) - Get NIO Inc. Sponsored ADR Class A Report NIO said that by the end of 2025, it plans to add 3,700 battery-swap stations, which would give it 4,000.

A swap station is where EV drivers go to quickly exchange their batteries for new ones, rather than waiting for a charge.

A typical electric car takes about eight hours to charge from empty to full, according to U.K. charging company Pod Point.

The company is making charging stations a priority, president and co-founder Qin Lihong told reporters on Friday.

Real Money’s Carolyn Boroden notes bullish technical factors for the company. “I have a simple symmetry setup to consider in NIO,” she wrote Friday.