Abbey National Wins Battle For Scottish Provident

The U.K.’s Abbey National, once known only as a mortgage lender, is set to join the top ranks of British life insurers with the almost certain acquisition of life and pensions group Scottish Provident for an estimated £ 2 billion ($2.96 billion).

When the deal is completed, Abbey will generate over 60 percent of its earnings from non-mortgage related sources. Scottish Provident’s 300,000 policyholders will also receive a windfall, but union members expressed concern that the deal could result in a loss of up to 500 jobs in Scotland. Abbey bought Glasgow based Scottish Mutual in 1992, and expects to combine its operations with Scottish Provident’s Edinburgh offices.