Aviva to consider 'even larger transaction' after Friends deal

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Aviva will consider another transformative acquisition once its takeover of Friends Life beds in, according to reports.

The insurer, which yesterday confirmed the agreement of a £5.6bn deal with its FTSE 100 rival, will have 16m UK customers and £340bn of AUM as a result of the merger with Friends.

The latter's group chief executive, Andy Briggs, will become CEO of Aviva's enlarged UK life business as a result. But the insurer is also looking for other deals, according to the Financial Times.

Citing unnamed sources familiar with the matter, the paper said Aviva CEO Mark Wilson (pictured) will "eye an even larger transaction once the Friends Life acquisition had bedded down".

Total integration of the two businesses is expected to take some time. Full run-rate benefits from the merger are not expected until the end of 2017.

Aviva plans £225m of annual cost savings within three years, with total cost cuts of £1.8bn higher than some had expected. The deal is still subject to approval from both sets of shareholders.

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