Aviva: Friends deal will add £600m to the business in two years

Aviva has said it expects its acquisition of rival Friends Life to generate extra revenue of £600m over the next two years, including and cost savings for the company of £225m.

The life company agreed to buy Friends in December 2014 in a £5.6bn deal that will create the UK's largest insurance, savings and asset management firm. In its full year 2014 results, Aviva said the financial rationale behind the transaction is to add around £600m to cash flow by the end of 2017, including £225m of cost savings, and eliminate any need to de-lever. Aviva also said it hoped the deal would secure its position in its home market of the UK, and add up to £70bn of funds to its investment arm Aviva Investors. A shareholder vote on the takeover is due to take place on 26 M...