Fleet News

AA in £6.2bn merger

The AA looks set to merge with holiday and insurance firm Saga, in a deal valuing the combined firm at £6.15bn.

The private equity partners of both firms announced the shock move on Monday.

Permira and CVC bought the AA for £1.7bn in 2004, while Charterhouse acquired Saga for £1.35bn in 2005. The deal sees Permira and CVC own 42.5% of the business, Charterhouse 37.5% and the management and staff of both businesses the remaining 20%.

AA chief executive Tim Parker has announced he will step down from the post. A statement said: “Tim Parker has signalled his intention to pursue new business projects outside the AA once the transaction is completed.”

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