LV= confirms discussions with other parties as Royal London merger rumours swirl

Sky News city editor Mark Kleinman said he understands LV='s board met last week to discuss the progress of a strategic review that began in June. The news outlet reported a decision about a deal with Royal London could potentially be reached within days.

The broadcaster suggested the two parties are not in exclusive discussions, and Bain Capital, the private equity backer of motor insurer esure, is also said to be keen on acquiring LV=.

LV= in a statement on Monday morning said: "The Board of Liverpool Victoria Financial Services Limited ("LV=") notes the recent press speculation and confirms that as part of a previously announced Strategic Review it has been and remains in discussions with a number of parties regarding a potential transaction.

"Discussions are on-going and there can be no certainty that the discussions will result in any transaction being agreed or with whom."

The precise valuation of LV= is unclear, although people close to the firm reportedly told Sky it would be in excess of £500m but "substantially less" than £1bn. Royal London is said to be planning to finance the purchase by using money raised last year.

Royal London and Bain Capital declined to comment.

 

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