The FTSE 100 group, which was formerly known as Phoenix Group, will fund the acquisition through a combination of cash, debt and newly issued shares, with Aegon set to become a strategic shareholder and asset management partner holding approximately 15.3% of the enlarged group’s share capital. The cash element of £750 million will be financed partly through a £650m debt issuance, with the remainder drawn from existing cash resources.

The transaction is expected to deliver significant financial benefits, boosting annual operating cash generation and adjusted operating profit by approximately £160m, whilst generating around £400m in additional excess cash over the five years following completion. The deal is also anticipated to be mid-single digit accretive to adjusted operating earnings per share by 2029.

The combination will propel Standard Life from a smaller retail provider to the UK’s second largest retail pensions and savings platform, whilst simultaneously establishing it as the second largest workplace pensions platform by assets. Together, the two businesses generated pro-forma gross annual flows of £30bn for the year ending 31 December 2025.

Group chief executive Andy Briggs said the deal “significantly accelerates our vision to be the UK’s leading retirement savings and income business”, adding that it would strengthen the group’s standing in “one of the world’s most attractive markets”.

Mr Briggs had previously hinted at M&A activity following Standard Life’s full-year results in March, when the group reported a 15% rise in profit to £945m and raised its total dividend by 2.6% to 55.40p per share.

Standard Life expects to unlock total net synergy value of £800m from the transaction, comprising £110m in annual pre-tax cost savings and £340m in one-off capital synergies, partially offset by approximately £400m in integration and separation costs.

Aegon chief executive Lard Friese described Standard Life as “the right owner for Aegon UK”, citing shared values and a strong commitment to customers, and said Aegon’s shareholding would allow it to participate in the future success of the enlarged group.

The transaction remains subject to regulatory and antitrust approvals and is expected to complete around the end of 2026.