By Daniel Hunter

Aviva have agreed a deal to buy Friends Life and in doing so creating the UK's largest insurance, savings and asset management firm.

The £6.5 billion deal will see the UK insurance giant add the pensions firm to their growing business.

The boards of both companies will now recommend the deal to shareholders.

The deal offers a 15% premium to Friends Life's closing price on the London Stock Exchange on 20 November.

It will also mean Friends Life shareholders will own about 26% of the enlarged Aviva group.

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