Asda Group Agrees GBP3.8 Billion Buy-In Insurance Scheme With Rothesay Life
19 October 2019 - 12:50AM
Dow Jones News
By Adriano Marchese
Walmart Inc.'s (WMT) Asda Group Ltd. said Friday that it has
agreed a 3.8 billion-pound ($4.88 billion) bulk annuity insurance
buy-in with Rothesay Life PLC.
The scheme's buy-in has been secured in anticipation of a full
buy out of the scheme and will be enabled by a one-off final
pension contribution from Asda of approximately GBP800 million, it
said.
Following the buy in, the scheme's approximately 12,300 members
will be provided with individual annuity policies issued by
Rothesay Life, who will then be responsible for paying members'
benefits in full.
At the time of the completion of the buy out, Walmart will
recognize a pretax charge to earnings of approximately $2.2
billion.
"This transaction is good news for members of the scheme,
simplifies the Asda balance sheet and will transfer our pension
liabilities at a competitive price," Executive Vice-President and
CFO of Walmart International Richard Mayfield said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
October 18, 2019 09:35 ET (13:35 GMT)
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