British insurer Aviva confirms deal to buy rival

(MENAFN- AFP) British insurance giant Aviva confirmed Tuesday a deal to buy rival Friends Life for more than £5.0 billion to create the country's biggest insurer.

"This acquisition is financially and strategically compelling," Aviva chief executive Mark Wilson said in a statement.

"It is one of those rare transactions where the two organisations fit with surgical precision, building on each other's strengths," he added.

Aviva, which has restructured considerably under Wilson, revealed in November that it was in talks with Friends over a potential tie-up.

The transaction is valued at £5.25 billion ($8.25 billion, 6.62 billion euros) according to the terms of the deal and taking into account Aviva's closing share price on Monday.

"By combining the market-leading strengths of the two businesses, we will create the UK's leading insurance, savings and asset management business, delivering additional scale and efficiencies," Friends Life chairman Malcolm Williamson said in the joint statement.