After months of speculation Scottish Life announced that it has agreed to be acquired by fellow U.K. mutual insurer Royal London for £1.1 billion ($1.62 billion).
The announcement ends speculation that other companies, notably GE Capital, Aegon and Liverpool Victoria, would acquire Scottish Life. It also assures mutual policy holders a windfall profit of about £4000 ($5920) on average when the deal is finalized next year.
It doesn’t end speculation in the U.K. about other takeovers, however. The Sunday Telegraph reported that CGNU was considering making a £1.3 billion ($1.925 billion) bid for fund manager Perpetual.
CGNU is also considered to be in the running to acquire the U.K.’s Equitable Life, which has been forced into a sale after an adverse court decision which ordered it to pay guaranteed annuities. The U.K.’s Prudential is reported to be the other major bidder. Equitable’s board is expected to make a decision soon.
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