Royal London and Royal Liver sign exclusivity deal

21 June 2010 0:00 am | Updated: 21 June 2010 3:37 pm | By Helen Pow

The firms will now carry out due diligence in a bid to determine whether a merger would be in the best interests of their respective members. The heads of terms also ensure Royal Liver does not commence talks with other parties.

No deals have been tabled as yet for the Royal Liver board to consider. If a deal is recommended by the Royal Liver board it would be put before its 200-strong delegation for approval at a special general meeting planned to take place later this year.

Royal London group head of communications Alasdair Buchanan says: “The two companies have signed heads of terms, which moves us from general discussions to sign an agreement where Royal Liver has committed to exclusive talks with Royal London and the formal start of the due diligence process for both parties.

“It is binding to the extent of the exclusivity and also as regards confidentiality of information disclosed but it does not definitely mean there will be a transaction although it does take us down that particular line. The earlier discussions have got to the stage where both companies feel there is clearly the potential for a transaction.

“There is no pressing need to do a deal so the thoroughness will be the key element. The hope would be that the whole process would be finished, if it is a go ahead decision, and could all be completed by the end of the year but there is certainly no guarantee that will happen.”

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