Just Retirement says Partnership merger to complete in Q1 2016

23rd Dec 2015 14:23

(ShareCast News) - Just Retirement said on Wednesday that its proposed merger with Partnership Assurance Group is likely to be completed in the first quarter of next year, which is a little later than previously anticipated.The companies had expected the deal to be finalised in January, but the annuities specialist said the decisions on the change in control applications are now likely to be received during the first quarter of 2016."Provided change in control is granted, we would therefore also expect the merger to complete in the first quarter of 2016," it said.Just Retirement also noted that Partnership will push back its general meeting until the circular about Just Retirement's general meeting on the merger has been posted, most likely in January.The companies announced in August that they had agreed an all-share merger deal under the new name of JRP Group.Just Retirement shareholders will own roughly 60% of the combined group and Partnership the rest after its shareholders receive 0.834 Just Retirement shares for each of theirs, valuing the group at £668.5m.The merger is expected to result in pre-tax cost savings of at least £40m per year by 2018 but is likely to require one-off integration costs of £60m over two years.Both firms said the fundamental reforms to the UK annuities market introduced by the government in its 2014 budget - where pensioners were given greater access to their savings - had led to sales of the products falling by 42% from £11.9bn in 2013 to £6.9bn in 2014.