And The Winner Is… U.K. Acquisitions

October 3, 2000

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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