Transamerica will acquire Fairmont Financial.

Transamerica Insurance Group, Transamerica Corp.’s property and casualty insurance operation, and Fairmont Financial Inc. announced the signing of a definitive agreement for the tax-free transaction valued at $150 million. Fairmont Financial stockholders will receive an aggregate of about 3 million shares of Transamerica Corp. common stock. Holders of Fairmont Financial options and convertible debentures will have the right to receive an aggregate of about 1.15 million Transamerica shares. Holders of Fairmont Financial common stock will receive 0.555 of a share of Transamerica common stock for each share of Fairmont stock.