Old Mutual could be broken up amid private equity takeover bids

Billy Bambrough
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Cars drive past an Old Mutual building o
Old Mutual has often faced speculation it will break up its business (Source: Getty)

Old Mutual, the FTSE 100 insurance group, is reviewing options for a breakup following a joint takeover attempt for its wealth management division from private equity firms Cinven and Warburg Pincus.

A breakup is one option being considered in a review of Old Mutual’s operations, and an update will be given on Friday along with the company’s annual results.

Old Mutual Wealth includes investment manager Quilter Cheviot and Old Mutual Global Investors.

The strategic review was kicked off by chief executive Bruce Hemphill in November last year after he joined the Anglo-South African firm.

Old Mutual’s market capitalisation of £9bn is thought to be less than the separate value of each of its businesses, which has previously prompted rumours of a break up.

Nedbank, one of South Africa’s biggest banks, as well as an emerging markets division could also be put up for sale.

Old Mutual was close to striking a deal with HSBC for Nedbank in 2010 but the deal was called off at the last minute. Its US-based asset management arm was listed on the New York Stock Exchange in 2014.

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