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Business & Finance

German insurer Allianz reportedly considering five billion pound takeover of AA

The British breakdown recovery group is also weighing a potential public listing on the London Stock Exchange.

The short version

  • German financial services company Allianz is reportedly in talks to acquire the British motoring association and breakdown recovery group AA for £5 billion.
  • Private equity firm EQT is also named as an active bidder alongside Allianz.
  • The current owners of AA are pursuing a dual-track process that could alternatively lead to a public stock market listing.

Key facts

  • Allianz is among a small number of parties holding discussions with advisers to the AA regarding a potential acquisition.[The Guardian]
  • Private equity firm EQT has also been identified as a bidder for the breakdown recovery group.[The Guardian]
  • AA's private equity owners, TowerBrook and Warburg Pincus, are running a dual-track process that includes the alternative of listing the company on the London Stock Exchange.[The Guardian]
  • TowerBrook and Warburg Pincus took AA private in 2020 after the company had previously floated on the stock market in 2014.[The Guardian]

What remains uncertain

  • It is not yet confirmed whether the talks will lead to a successful takeover or if AA's owners will instead choose the public listing route.[The Guardian]
  • TowerBrook and Warburg Pincus both declined to comment on the reported acquisition talks.[The Guardian]

Sources