Pearl and Resolution agree takeover terms

by Gill Montia

Story link: Pearl and Resolution agree takeover terms

Pearl Group and Resolution have agreed the terms of a takeover that will create a combined group with assets of £85 billion.

The management boards of both closed life fund managers have formally consented to the terms of the Pearl bid, under which Resolution shareholders will receive 720p per share.

The agreement values Resolution at approximately £4.98 billion.

Pearl, which is Resolution’s largest shareholder (25.93%), has made it clear that the Resolution management team will continue to be involved in running the merged companies.

Hugh Osmond, Pearl’s chief executive, says: “We wish to combine the proven strength and expertise of both teams to create one organisation capable of delivering far more than either of its constituent parts.”

Once the acquisition is complete, Royal London will have the right to acquire some of Resolution’s business and assets, in a transaction valued at £1.267 billion.

Royal London, which owns Scottish Life, is particularly interested in acquiring Resolution owned Scottish Provident, the protection specialist.

Meanwhile, Standard Life chief executive, Sandy Crombie, has been struggling to defend his reputation, following the company’s failed bid for Resolution.

The Standard Life offer has not yet lapsed and the rules applied to mergers and acquisitions currently prevent Mr Crombie from explaining why the bid was abandoned at that point.