Prudential in advanced talks with AIA
Prudential, which is Britain’s second largest insurer, is understood to be in ‘advanced talks’ to acquire AIA, the Asian arm of US company American International Group (AIG).
AIA is a key part of AIG with around 20 million customers and reports say the deal could cost about $30 billion (£19.6 billion).
In order to finance the deal, Pru is understood to be embarking on a rights issue of around £13 billion.
Prudential has declined to comment on the deal but reports say the insurer will issue a statement to the market this week.
Should a purchase go ahead, it would mean a large shift in the geographical focus for Prudential. However, a deal would need to be approved by the US Government, which owns 80% of AIG.
AIG was bailed out by the US Government in 2008 to save it from collapse and it has received more than $180 billion in funding.
A year ago, it posted the biggest quarterly loss in US corporate history.