Friends Provident, Resolution mulling merger

23-07-2007

Friends Provident, Resolution mulling merger
Insurance companies Friends Provident and Resolution have announced that they are in "advanced discussions" regarding the merger of the two businesses.

The proposed move would lead to the creation of a company worth £8 billion.

A joint statement said that the "merger would create significant value for both sets of shareholders by combining Friends Provident's new business growth opportunities with Resolution's strong cash flow generation".

An all-share combination of the two groups would see Resolution shareholders owning 50.9 per cent of the new company. The remaining 49.1 per cent of shares will be held by Friends Provident shareholders

News of the merger gave a boost to both company's shares in early trading in London. Friends Provident shares rose by 7.3 per cent while Resolution shares gained 6.9 per cent.

The firms expect the merger to result in synergies on account of Friends Provident's strong administrative network and Resolution's recent outsourcing agreements with Capita, according to the statement.

Friends Provident sells insurance policies, pensions and investment products to individuals and businesses in the UK. Resolution is the UK's largest closed life insurance fund.

Previously Resolution purchased Abbey's closed life funds business for £3.6 billion.



Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
HR / Recruitment
Health / Beauty
Hotel / Catering / Restaurants
IT / Internet
Insurance / Pensions
International / Overseas
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure