Jobs Fear Over £2.75bn AXA UK Takeover Deal


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Jobs look to be under threat at Axa's UK life insurance and pensions business after a £2.75bn takeover deal was confirmed.


Axa businesses being sold are based largely out of Bristol,
where it has two centres

Buy-out firm Resolution says it intends to slash £75m in costs in just four years by merging the business with Friends Provident.

The bulk of the savings would hit sales and marketing, with the remainder largely coming from customer service, IT and business support operations, according to details of the proposed deal.

Around 2,000 directly-employed Axa staff will transfer to Resolution if the deal goes ahead, but it is not yet known how many roles could be lost.

Sky's City editor revealed exclusively this month that Resolution, owned by insurance tycoon Clive Cowdery, was in detailed talks to acquire most of AXA's UK life insurance operations, with a view to merging them with Friends Provident.

"The deal’s logic is irrefutable for both parties," Kleinman said at the time.

Resolution has now confirmed it will buy French insurer AXA's British life insurance and savings units for £2.75bn, involving a cash payment of £2.25bn with the rest paid in shares.

The Axa businesses being sold are based largely out of Bristol, where it has two centres, but also include offices in Coventry and Basingstoke.

Meanwhile Friends Provident employs around 4,000 in the UK and overseas, with UK offices in Manchester, Exeter, Salisbury, London and Dorking, Surrey.

Resolution's deal with Axa would create one of the UK's largest protection and group pensions businesses, to be called Friends Life.