German financial services company Allianz is reportedly considering a £5bn takeover swoop for AA, the breakdown recovery group, according to Sky News.
Allianz is one of a small number of parties holding talks with advisers to the AA about a deal, Sky News said, adding that private equity outfit EQT was another bidder.
Background and ownership
AA was founded by a group of motoring enthusiasts in 1905 and is known in Britain for its yellow recovery vehicles. Its private equity owners have been pursuing a dual-track process for most of this year, with the alternative to a sale being a public listing on the London Stock Exchange.
In 2020, AA was taken private by its private equity investors TowerBrook and Warburg Pincus, having been floated on the stock market in 2014.
Response and previous reports
Both companies declined to comment. The Financial Times reported last year that AA was considering a £5bn sale and was seeking buyers.
