Bermuda-based Castlewood Holdings Ltd., which specialises in taking over distressed insurance and reinsurance companies, has finalised the purchase of UK-based Cavell Holdings Ltd.

But it also announced it is still awaiting approval from the US Securities and Exchange Commission for its planned merger with majority shareholder The Enstar Groups/

Castlewood paid about $36 million in cash and $24 million from a loan to buy Cavell from Dukes Place Holdings LP. Cavell owns a UK and a Norwegian reinsurance company, both of which are currently in run-off.

Enstar and Castlewood entered into a merger agreement in May, but the SEC has yet to make its ruling. If the registration statement that is filed with the SEC goes effective, company management will set a date for a stockholder vote on the issue.

Enstar's stock closed at $94.08 Wednesday, up more than 20 percent from its price when the merger was announced in April.