Just Retirement and Partnership have announced a merger deal.
Just Retirement shareholders will own approximately 60% of the combined group, with Partnership Assurance shareholders owning the other 40%.
Under the terms of the merger, Partnership shareholders will be entitled to receive 0.834 new Just Retirement shares for each Partnership share held.
The deal values Just Retirement shares at 199p, Partnership shares at 166p, and values the entire issued and to be issued ordinary share capital of Partnership at approximately £668.5m.
The boards of Just Retirement and Partnership have agreed a unified management team of the combined group under the leadership of Rodney Cook as group chief executive.
Just Retirement and Partnership intend to raise equity capital amounting to approximately £150m following the merger.
The boards of Just Retirement and Partnership said they believe the merger will deliver "significant strategic and financial benefits" for the combined business.
Annuity businesses including Just Retirement and Partnership have suffered following Chancellor George Osborne's public censure of the annuity market, and the introduction of pension freedoms which essentially removed the near monopoly annuity providers had of the retirement market.
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