Prudential has confirmed it will combine with its asset management arm M&G in a bid to meet client demands for comprehensive financial services.
The merged entity - to be known as M&G Prudential - will form a savings and investments business, managing £332 billion of asset s for more than six million customers globally.
Mike Wells, chief executive of Prudential Group, explained both entities have a history of working together and combining the two will allow ‘better leverage’ of scale and services.
“Bringing together these two high-quality businesses, while transitioning to a capital-light model, will enable M&G Prudential to increase its growth prospects by providing better outcomes for our millions of customers and in turn generate strong returns for our shareholders,” he said.
Shareholders at both firms are expected to contribute £250 million towards investments following the merger and will see cost savings of approximately £145 million per year by 2022.
The current chief executive of Prudential UK&E, John Foley, will become chief executive of M&G Prudential, while Anne Richards, CEO of M&G will remain in her position.
Foley commented the combination of the two businesses allows greater choice to a wider range of customers.
Further details on the deal will be presented at Prudential’s investor day in November this year.