Japan's Sompo to acquire Aspen Insurance for $3.5 billion in westward push

Sompo Holdings said that it would acquire New York-listed Aspen Insurance Holdings for about $3.5 billion, joining a number of Japanese financial firms that are investing in overseas assets to drive growth.

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Sompo has offered $37.50 for each share of the U.S. firm, which is majority-owned by Apollo Capital Management, representing a 35.6% premium to Aspen's unaffected share price. Aspen shares rose 13% to $36.40 in morning trading.

"While we think the company is worth more intrinsically, it is hard for us to imagine another bidder emerging," Citigroup said in a note.

Dwindling growth in the domestic financial market has prompted Japanese companies, including insurers, brokerages and banks, to explore overseas options.