UK mutual life and pensions company The Royal London Mutual Insurance Society Limited said today it had agreed to buy Co-operative Insurance Society Limited (CIS) and The Co-operative Asset Management Limited (TCAM) from domestic Co-operative Banking Group Limited for GBP219m (USD330.4m/EUR255.5m).
The purchase price includes a deferred consideration of GBP180m, depending on the fulfillment of certain conditions. The addition is seen to bolster the buyer’s funds under management to GBP70bn from GBP50bn, it said.
Under the terms of the deal, the vendor will preserve The CIS Long Term Business Fund, whereas Royal London will offer policy administration services, asset management services and governance to it under an agreed expense arrangement.
The deal hinges upon approval by Royal London’s members, who are due to meet by the middle of 2013, as well as upon regulatory approvals.