Business News |
|
Aviva may target recovering Prudential
As the after effects of its failure to buy Asian insurer AIA hit Prudential, analysts have estimated that the insurer's assets in the US, UK and Asia would be worth more if they were sold or demerged into separate units. Some shareholders are also keen to see Prudential sell its UK arm in order to focus on the Asian market.
Should the break up go ahead, Prudential's UK business could become a target
for Aviva. Although the insurance giant is currently only looking to make
bolt-on acquisitions and its shareholders would be likely to oppose such a
merger due to slow growth in the UK market, this could change if the
business was available for a suitable price.
Prudential UK is also likely to be a target for Aviva's competitor, Resolution, which has agreed to acquire AXA's life insurance assets for £2.75 billion. Resolution is known to be looking to make another sizeable purchase before floating on the London Stock Exchange in 2013.
It is unlikely that Aviva would take a back seat and let Resolution buy Prudential UK at a cut price.
