Resolution moves in on Clerical Medical
Resolution Limited, the acquisition vehicle headed by Clive Cowdery, is reported to be in talks with Lloyds Banking Group over the sale of Lloyds’ Clerical Medical business.
Lloyds TSB’s takeover of HBOS last year meant the new group included Lloyds’ life insurance arm, Scottish Widows, plus HBOS’s Clerical Medical and Halifax Life units.
Bearing in mind the need to make cost savings of over £1.5 billion by 2011, streamlining the life insurance operations of the new group was always expected to be a priority and in May, Lloyds announced plans to merge Clerical Medical with Scottish Widows.
However, as far back as last autumn Mr Cowdery was showing an interest Clerical Medical and a successful bid by Resolution now would follow hot on the heels of its acquisition of Friends Provident, for £1.86 billion, earlier this month.
Resolution Limited was set up by Mr Cowdery last year with the declared intention of acquiring firms with restructuring potential in the banking, life insurance and asset management sectors.
Analysts value Clerical Medical at up to £4 billion.
Category: Companies News, Insurance News
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