Aegon to buy Merrill Lynch units for $1.3BDutch 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. |
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