CMA clears Just Retirement and Partnership merger

It is expected that the Merger will become effective around late December 2015, subject to the approval of the Merger by the Prudential Regulation Authority and the Financial Conduct Authority.

The Merger is expected to result in Just Retirement Shareholders owning approximately 60% of the Combined Group and Partnership Assurance Shareholders owning approximately 40%.

Partnership Assurance has been valued at approximately £668.5 million.

Just Retirement and Partnership intend to raise equity capital amounting to approximately £150 million and expect the Merger to result in pre-tax cost savings of at least £40 million per annum.

Chris Gibson-Smith, Chairman of Partnership Assurance, said:

"I am delighted to announce the recommended all-share merger of Just Retirement and Partnership Assurance. Both businesses have at their core a focus on using outstanding intellectual property and underwriting expertise to deliver better value products and improved customer outcomes within defined benefit, UK retail retirement income and international markets."

Tom Cross Brown, Chairman of Just Retirement, said:

"This transaction represents a unique opportunity to accelerate the existing strategy of both businesses. Our two businesses will be bigger, stronger and more efficient together, which we believe will allow us to deliver better returns to both policyholders and shareholders."