Aviva to Cut About 1,500 Jobs with Friends Life Acquisition

By | January 20, 2015

Aviva Plc said it may eliminate about 1,500 jobs with its £5.6 billion ($8.48 billion) takeover of Friends Life Group Ltd.

The job losses form part of an estimated £225 million [$340.76 million] in annual savings from the deal by the end of 2017, London-based Aviva said in a notice to shareholders. The companies employ about 31,500 people in total, Aviva said.

“This news may be disconcerting for employees and we would look to ensure that any redundancies are kept to a minimum, wherever possible,” Aviva said in an e-mailed statement. “At this stage, no specific teams, roles or locations have been identified.”

Aviva, Britain’s second-largest insurer by market value, agreed to buy Friends Life in an all-stock transaction in December in the U.K. industry’s biggest takeover in 15 years. Both insurers are scheduled to hold meetings for shareholders to vote on the deal on March 26.

Aviva’s climbed 0.9 percent to 511 pence at 3:43 p.m. in London trading. Friends Life, which rallied 1.2 percent to 386 pence, is scheduled to cease trading on April 13.

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