In a statement this morning, LV= said: "LV= entered into merger discussions with Royal London at the start of the year. However, it has become clear to LV= that our different mutual models mean such a merger would not be in the best interests of LV= members. As a result, talks between the two companies have now ceased."
Seamus Creedon, LV= interim chair, commented: “We thank Royal London for its engagement and we look forward to operating alongside it as part of a vibrant mutual sector. The strength of LV=’s business performance over the past 18 months combined with its operational progress has strengthened the Board’s belief in, and commitment to, the continuation of our status as an independent mutual.
“We have heard what our members have said about the importance of mutuality and the continuation of the LV= brand. We continue to maintain our strong capital position, are trading well and building a successful future for LV=, its members, employees and wider communities. We will shortly update our members on our business strategy and will continue to engage with them over the coming weeks and months.”
LV= had previously rejected a takeover bid from Royal London, instead supporting a takeover bid from Bain Capital.
Around 1.1 million LV= policyholders voted to approve the Bain Capital bid in December, with 69.4% approving the plans for the £530 million deal. However, the proposal failed as the board needed to secure 75% for it to pass.
After the vote, LV= said it would “move swiftly” to reassess its strategic options and explore alternative ways to look to sell the business.
