Members of life and pensions mutual Royal London have agreed to proposals to acquire the life insurance and asset management businesses of the Co-operative Banking Group.
The acquisition will see the Co-op receive £219m in total with £39m paid up front, and £180m from a CIS fund within the life and pensions division returned to the Co-op on completion of the deal.
If signed off by the regulators - the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) - the acquisition is likely to be completed in late summer 2013.
Some 95% of the members voted in favour of the motion at the company's extraordinary general meeting (EGM) in London this morning.
The company required just a simple majority member vote in favour for the proposals to be passed.
Royal London chairman Tim Melville-Ross said: "The acquisition increases our scale, capabilities, profitability and financial strength.
"The board believes it will support further our mutual dividend policy which has already seen over £325m allocated to our members accounts since 2007."
With the acquisition, Royal London Group's funds under management will increase from approximately £50bn to £70bn and asset management capabilities will also be strengthened, particularly in the area of socially responsible investments.
The group will increase its customers from about four million to six million and the number of policies managed will increase from 6.8 million to 10.3 million.
The EGM was followed this morning by the Royal London's Annual General Meeting (AGM), the last for Tim Melville-Ross as chairman before his retirement.
Rupert Pennant-Rea is to be appointed the new chairman at the AGM.
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