Royal London has received regulatory approval for its takeovers of the Co-operative Group’s asset management and life insurance businesses.
The Prudential Regulation Authority has approved the acquisition of the Co-operative Insurance Society as the Financial Conduct Authority waved through the deal to buy Co-operative Asset Management.
The £219m deal, which was agreed in March, is now expected to be completed on 31 July.
It will see Royal London’s funds under management increase from approximately £50bn to £70bn and its customer base increase from 4 million to 6 million.
Royal London members voted in favour of a deal at an extraordinary general meeting in June.
As part of the completion process, CIS must convert from an industrial and provident society to a limited company and change its name to RL (CIS).
Shortly following the transfer to Royal London, RL (CIS)’s name will change to Royal London (CIS).
Royal London group chief executive Phil Loney says: “Today is a significant milestone in the process of buying Co-op’s life insurance and asset management businesses.
“We have the approval of our members and now we have the approval of the PRA and FCA. The transaction can now go forward to completion and we can start to realise the benefits for Royal London members and for the Co-op’s policyholders.”
Co-op Banking group chief executive Niall Booker says: “The transfer of ownership of our life assurance and asset management businesses to Royal London will ensure the continued protection of our policyholders, within a strong, mutual business with the necessary scale and focus on the long-term savings sector.
“We believe this is the best outcome for our policyholders and members.”