Standard Life has struck a cash-and-share deal to buy the UK business of Dutch financial group Aegon for £2 billion.
Following the completion of the deal, the FTSE 100 pension and savings group will have 16 million customers and £480 billion of assets under administration.
Standard Life, formerly known as Phoenix Group, will pay £750 million in cash for the business and issue 181.1 million new shares to Aegon. Shares in Standard Life rose 0.6 per cent to 719p on Wednesday.
Aegon will be the largest shareholder in Standard Life, with a 15.3 per cent stake, and will be entitled to appoint one non‑executive director to the group’s board.
Royal Bank of Canada, Barclays, and Lloyds Banking Group had all been linked with a bid for Aegon’s UK division, which was put up for sale late last year as part of a wider restructuring that will see Aegon move its headquarters to the US and rebrand as Transamerica.
Business newsletter
The business editor’s exclusive analysis of all the latest financial and economic news.
Sign up with one click
Andy Briggs, chief executive of Standard Life, said: “Our agreement to acquire Aegon UK significantly accelerates our vision to be the UK’s leading retirement savings and income business.”
Phoenix acquired Standard Life’s insurance business from what was Standard Life Aberdeen in 2018 and announced plans to rebrand itself as Standard Life last year.
Standard Life operates under a number of brands, including Sun Life, Reassure, and Phoenix Life.
Lard Friese, chief executive of Aegon, said: “The businesses are complementary and the combination offers an excellent outcome for Aegon UK’s customers and colleagues.”