Old Mutual is in talks to buy Skandia for £3.3 billion, causing speculation about a break up of the Swedish insurer. Shares in Old Mutual fell by 5%, from 129p to 122.75p after the South African firm said that they were in early talks with Skandia. It is believed that Old Mutual is after the whole of Skandia's business, which would make them an international company instead of having a South African and US bias.
Several UK companies have tried to enter the European market and failed.
Our view
Skandia is a great player to acquire with excellent products and infrastructure.