Allianz Weighs £5 Billion Acquisition of UK Roadside Assistance Firm AA
German financial services giant Allianz is considering a potential takeover of the British roadside assistance provider AA in a deal valued at approximately £5 billion ($6.77 billion), Sky News reported on Saturday.
Allianz is among a select group of bidders engaged in preliminary discussions with AA’s advisers regarding the potential transaction. Private equity firm EQT has also emerged as another interested party.
The private equity owners of AA have pursued a dual-track strategy since the beginning of the year, weighing a direct sale of the company against a potential return to the London Stock Exchange via an initial public offering (IPO), according to the report.
Centuries-Old Motoring Brand
Founded in 1905 by a group of motoring enthusiasts, AA is an iconic British brand renowned for its yellow breakdown recovery vehicles providing roadside assistance across the United Kingdom.
The company was previously taken public by its former private equity owners in 2014 at an offering price of 250 pence per share.
The Financial Times reported last year that the UK roadside assistance group was actively exploring a sale targeting a valuation of around £5 billion and had begun courting prospective buyers.