Royal London has received regulatory approval for its takeover 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 FCA waved through the deal to buy Co-operative Asset Management.
The £219m deal, agreed in March, is expected to be completed on 31 July.
Royal London members voted in favour of a deal at an extraordinary general meeting in June.
It will see Royal London’s funds under management increase from about £50bn to £70bn and its customer base rise from four to six million.
The Co-operative Bank has been forced to ask bondholders for money in a bid to fill a major capital shortfall highlighted by the PRA earlier this year.
Royal London group chief executive Phil Loney says: “This is a significant milestone in the process of buying Co-op’s life insurance and asset management businesses. The transaction can now go forward to completion and we can start to realise the benefits for Royal London members and for Co-op policyholders.”
Evolve Financial Planning director James Norton says: “The Co-op has no choice as it has a capital shortfall which needs to be funded. It is taking money from bondholders and selling off businesses, which is down to bad management.”