The Resolution board has recommended the 720p per share Pearl offer this afternoon.
Under the terms of the deal, Pearl subsidiary Impala will acquire entire issued and to be issued Resolution share capital, valued at approximately £4.98bn.
In a joint statement to the stock exchange, the pair noted the offer represents “excellent value for Resolution shareholders”.
Pearl remains Resolution’s largest shareholder, with an approximate 25.93% stake.
As announced on 19 October, Royal London will have the right to acquire certain Resolution business and assets.
Pearl chief Hugh Osmond says Resolution and its management team have built an “outstanding business” and created significant shareholder value.
“We wish to combine the proven strength and expertise of both teams to create one organisation capable of delivering far more than either of its constituent parts,” he says.
“We believe that this will herald a bright future for policyholders, shareholders and employees of the combined group.”
Resolution chairman Clive Cowdery added: “Resolution welcomes both the value delivered to its shareholders and Pearl's commitment to maintaining policyholder improvements. The board of Resolution is delighted to recommend this transaction which creates a major UK insurer and an expert manager of closed funds.”
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