Aegon to buy Merrill Lynch units for $1.3B

Dutch insurer will buy two life insurance businesses from Merrill Lynch.


NEW YORK (CNNMoney.com) -- Life insurer Aegon said late Monday it will buy Merrill Lynch Life Insurance Co. and ML Life Insurance Co. of New York for $1.3 billion in cash.

Aegon said the purchase price includes excess surplus of $425 million, and its Transamerica companies will provide support to the investment bank's financial advisor network.

Merrill Lynch said it will continue to serve the insurance needs of its clients through its core distribution and advisory capabilities and will offer its Merrill Lynch Investor Choice Annuity product through its financial advisor network.

The deal is subject to regulatory approval and is expected to close before the end of the fourth quarter of 2007.

Aegon and Merrill Lynch also announced a strategic relationship in the areas of insurance and investment products, the companies announced in a joint statement.

Shares of Aegon (Charts) closed up 12 cents to $17.90 while shares of Merrill Lynch (Charts, Fortune 500) fell nearly 1 percent to $73.53, both on the New York Stock Exchange. Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.