NN Group NV said Wednesday it plans to offer €2.4 billion ($2.7 billion) to buy fellow Dutch financial services group Delta Lloyd NV in a move it says would create a leader in the country's pensions, insurance and banking sectors.

NN is offering €5.30 a share for Delta Lloyd, a 29% premium to Delta Lloyd's latest closing price.

"We believe there is a clear and compelling logic to bring consolidation to the Dutch insurance market through a combination of the businesses of NN Group and Delta Lloyd in a way that benefits both companies and their stakeholders," said NN Chief Executive Lard Friese.

"The combination will be a leading player in the Dutch insurance, banking and asset management markets, with a strong international presence, which will benefit from economies of scale and significant free cash flow generation potential, and offer an array of attractive products and services to customers," he said.

NN Group was formerly part of Dutch bank ING Groep NV, but split from the company in 2014 and was floated on the Dutch stock exchange in the same year.

Delta Lloyd operates in insurance, pensions, investment and banking, under the Delta Lloyd, ABN Amro Insurance, BeFrank and OHRA brands.

Write to Rory Gallivan at rory.gallivan@wsj.com

(END) Dow Jones Newswires

October 05, 2016 02:45 ET (06:45 GMT)

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