Resolution finalises business negotiations with Axa UK
Investment firm will double its market share of UK life and pensions industry
Resolution has successfully finalised business negotiations
for the acquisition of the majority of Axa's UK division in a £2.75
The proposed move will double the market share of Resolution's
Friends Provident division in the UK's life and pensions
Further moves are planned as officials aim to takeover four more
insurers before merging and selling them on for a profit by
The company claims insurers will be open to deals, as lower UK
sales and regulatory changes will force firms to exit the British
John Tiner, Resolution's chief executive, said: "We see a strong
pipeline of potential further consolidation steps."
The investment firm confirmed they will fund the move with a
£2.06 billion fully underwritten rights issue.
Investors who bought into Resolution expecting to fund
takeovers, will be offered 17 new shares for every share they hold
at 150 pence each.