Resolution opens negotiations with Axa over life assurance merger
Negotiations have been launched between Resolution and Axa over a possible merger.
Resolution has confirmed that it has started negotiations with
Axa as it looks to acquire its UK life assurance businesses.
The group, which already owns Friends Provident, has outlined
its plans to launch a £2 billion rights issue in order to finance
the proposed £2.75 billion deal.
By merging Axa's UK businesses with its existing Friends
Provident operations, Resolution would become Britain's biggest
life insurance provider, with the deal enabling both the company
and its customers to benefit from significant savings.
Commenting on the plans, Resolution chief executive John Tiner
said in a statement: "This acquisition would build strong momentum
in Resolution's life assurance consolidation project, and provides
a range of options for further activity."
In particular, it is intended that the initiative would
rationalise sales and enable savings in the areas of sales and
marketing, though workers' unions have already warned that such a
merger is likely to lead to job losses.
Meanwhile, the New Zealand Commerce Commission has further
delayed its ruling on AMP's proposed acquisition of Axa Asia