US based financial holding company Markel’s planned purchase of Bermuda-based Alterra Capital in a deal valued nearly $3.13bn in cash and stock, has received approval from the shareholders of both firms.

The transaction, originally signed on 19 December 2012, is still subject to receipt of regulatory approvals and other customary closing conditions and is likely to conclude in the second quarter of 2013.

After completion of the transaction, current shareholders of Markel will own nearly 69% of the integrated entity on a fully diluted basis, with Alterra’s shareholders managing nearly 31%.

Two directors elected by Alterra’s current board will be added to the board of directors of Markel.

Commenting on the deal, Markel vice chairman Steven Markel said, "In particular, the addition of Alterra’s reinsurance and large account insurance portfolios will serve to diversify and strengthen Markel’s current book of specialty insurance business."

Citigroup and BofA Merrill Lynch served as financial advisor to Markel and Alterra, respectively, while Debevoise & Plimpton and Appleby as well as Akin Gump Strauss Hauer & Feld and Conyers Dill & Pearman acted as legal counsel.