Pearl buys Resolution for £4.98bn

Pearl has beaten off competition from Standard Life

Pearl Assurance has won the battle to buy fellow insurer Resolution, saying its £4.98bn offer had been accepted.

The announcement comes five days after Pearl's rival suitor Standard Life said it was abandoning its £4.6bn bid.

Resolution's board had initially backed Standard Life's approach, but changed its mind after Pearl came forward with its higher offer.

Pearl, which was already a Resolution shareholder, also boosted its stake in the firm to 25.9% after Standard's bid.

'Outstanding business'

"Resolution and its management team have built an outstanding business and created very significant value for its shareholders," said Pearl's chief executive Hugh Osmond.

"We wish to combine the proven strength and expertise of both teams to create one organisation capable of delivering far more than either of its constituent parts."

Pearl's bid was not only higher than Standard Life's, it was also all-cash, while Standard Life's was only a mixture of cash and shares.

Back in the summer, Resolution had initially intended to merge with fellow insurer Friends Provident.