Standard Life, formerly known as Phoenix Group, has agreed to buy Aegon's UK arm for £2bn, creating a pensions and savings group with 16 million customers and £480bn of assets under administration. The deal marks Aegon's exit from the UK market as it focuses on the US, where it will rebrand as Transamerica.
Aegon put its UK business up for sale late last year, with Barclays and Lloyds Banking Group among potential bidders. The UK arm traces its roots to 1831 when it was founded as Scottish Equitable in Edinburgh. Aegon acquired it in 1998 and rebranded it as Aegon UK in 2009.
Standard Life will pay £750m in cash and issue 181.1m new shares to Aegon. Aegon will become Standard Life's largest shareholder with a 15.3% stake and will appoint one non-executive director to the board.
Andy Briggs, Standard Life's group chief executive, said the deal “significantly accelerates our vision to be the UK’s leading retirement savings and income business”. He plans to cut £110m in costs but said only half would be achieved in the first three years, with a modest impact on jobs.
Lard Friese, Aegon's chief executive, described the transaction as “an important step in our ambition to become a leading US life insurance and retirement group”. Aegon UK employs 2,000 staff, mainly in Edinburgh.
