Saga to dominate in AA merger

by Gill Montia

Story link: Saga to dominate in AA merger

Following the £6.15 billion merger of Saga and the AA, four senior AA executives are being replaced by senior managers from Saga.

The AA posts vacated are: financial director, human resources director, information systems director and head of insurance.

Saga’s Stuart Howard has been named group finance director, Janet Thompson will become director of human resources and Andrew Strong has been appointed to head the AA’s newly merged insurance and roadside assistance unit.

Tim Parker, the AA’s chief executive, is also expected to leave once the merger is complete.

The management changes indicate that Saga will play the more dominate role than the AA in the merged entity.

The GMB, the AA’s former trade union, has already expressed concerns that Saga will use the AA’s insurance panel to merely build up its own business within the over 50s motor market.

Saga does have plans to restructure the AA panel but has issued reassurances that the two brands will exist side by side.

The GMB has recently claimed that the merger could result in up to 2,000 job cuts but both Saga and the AA have stressed that the aim of the merger is to grow both businesses whilst maintaining their separate identities and operations.