Mercury Cos. Inc. said over the weekend it was in talks with First American Title of California about a buyout.
But Wednesday, Fidelity National Financial Inc. of Florida announced it had acquired the Denver-based company responsible for about a third of the title-insurance business in the state.
Homeowners and real-estate professionals know Mercury better through its subsidiaries Security Title, First American Heritage Title, Title America and United Title. Mercury shut down operations in Arizona, Texas and California last week after lenders cut off its credit, disrupting several real-estate deals in progress.
But Fidelity’s acquisition should mean Colorado customers face a smoother transition, even as the state loses the headquarters of a company that once employed 6,000 workers nationwide across 500 branches.
“Fidelity National Financial is an exceptionally strong, stable and well-run title company. Its financial strength and operational acumen will allow our Colorado operations to continue to provide the service and performance that our customers have come to expect for so many years,” Jerry Hauptman, Mercury’s chairman and chief executive, said in a statement.
Fidelity’s purchase should shift the balance of power in Colorado’s title- insurance market, which generated $304 million in premiums last year, said Jeremy Yohe, editor of the Title Report, an online industry publication.
“For years, First American was the dominant underwriter in Colorado because of Mercury’s agents. Now, I’d expect Fidelity to claim that position,” Yohe said.
But with Fidelity holding an estimated 50 percent of the title-insurance market, state regulators may not look too keenly upon the deal, he added.
Another thing that could complicate the buyout is a long-running legal battle First American and Mercury are engaged in over First American’s ownership interest in Mercury.
First American will have to resolve that with its archrival Fidelity, if it hasn’t already done so.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
