The French group AXA has acquired WINTERTHUR (CREDIT SUISSE group) for €8.9 billion. This sum is 11.6 times more than the value of the net profits for 2005 and 1.3 times the size of WINTERTHUR's own funds. The deal will be funded via an increase in capital to the tune of €4.1 billion and sale of the debt worth € 4.8 billion. The transaction strengthens AXA's positions in Europe (especially in Belgium and Germany) and makes it a leader in the Swiss insurance damages market and number two in life-savings and pensions. It also increases its market share in Spain and the United Kingdom, as well as its business in Asia (Japan, China and Hong Kong) and Eastern Europe (life-savings and pensions in Poland, Hungary, Czech Republic and Slovakia). AXA will also gain the €100 billion in assets managed by WINTERTHUR.