MetLife Inc. finally sealed a deal with American International Group Inc. (AIG) to buy stake in American Life Insurance Co (Alico) for $15.5 billion.

As per the deal, AIG would sell 20 per cent stake in Alico for $6.8 nillion in cash and another $8.7 billion in form of 78.2 million common stocks and 6.6 million shares of convertible preferred stocks. Post completion, the deal would make AIG the second largest shareholder in MetLife with 14 per cent stake in the company.

However, MetLife's stake in AIG would have a voting restriction to prohibit the latter from interfering in decision making and operations of MetLife, the largest life insurer in the US.

Earlier, a week ago, Prudential PLC agreed to buy to AIG's Asian life-insurance operations for $35.5 billion. With two back to back two deals in place AIG is now certain to repay nearly $32 billion in cash to the Federal Reserve Bank. The company troubled financial services company received $47 billion from the Treasury through the Troubled Asset Relief Program (TARP).

The government currently holds nearly 80 per cent in AIG in preferred shares.