UK-based insurer Aviva has received approval from the European Commission (EC) for its proposed acquisition of Friends Life for around £5.6bn ($8.8bn).
The deal was first announced in December 2014, under which both companies signed an agreement, on the terms of a recommended all share acquisition of Friends Life by Aviva.
As per the terms of the possible offer, Aviva will acquire the entire ordinary share capital of Friends Life on the basis of an exchange ratio of 0.74 Aviva ordinary shares for each Friends Life ordinary share.
Aviva shareholders will own around 74% of the enlarged company, while Friends Life shareholders will own approximately 26%, once the deal concludes.
The deal will allow Friends Life’s five million customers to benefit from Aviva’s product offer in general insurance, health, and asset management as well as life insurance,
In addition, the transaction will allow Aviva to double its corporate pension assets under administration and create new opportunities by serving Friends Life’s £2bn of annual pension vestings.
Friends Life was founded as Resolution Limited by entrepreneur Clive Cowdery in 2008, and changed its name to Friends Life Group in May 2014.
Image: St. Helen’s, Aviva’s world headquarters in London. Photo: courtesy of Colin.