Resolution Ltd, an insurance buyout vehicle in UK, announced that it has agreed to acquire some of French insurer AXA SA's U. K. life operations for around £2.75 billion. Resolution said that it took this move as a logical next step in its strategy to double its market share in the U. K. life and pensions market.

The deal is expected to close in September this year. According to the deal, Resolution will acquire UK assets of AXA including traditional life and pensions businesses and annuity business. Resolution will pay £2.25 billion in cash and £500 million in shares.

Resolution said that it will fund the deal mostly via a rights issue. The fund said that its leading investors will cheaply underwrite half of a £2 billion rights issue to fund the deal. This step of Resolution is seen as a step further in its strategy to become a dominant player in UK life insurance market through the merger of several companies. Resolution already owns Friends Provident and is planning to merge the two companies in line with its strategy. Resolution is also said to be considering other possible acquisitions in near future.