Saga set to end uncertainty over the AA's future with the imminent acquisition of the motoring giant
Saga, which specialises in selling products to the over-50s, is set to buy the AA in a deal that could create a £8bn business.
According to reports the acquisition is set to be officially announced soon and would value the AA business at about £3.4bn.
Speculation has mounted in recent months that private equity firms Permira and CVC, which bought the AA for £1.7bn in 2004, were looking to exit the company by the end of the year.
Uncertainty has also surrounded the future of Saga after the company confirmed it was considering a £2.5bn flotation for later this year.
The company admitted it had appointed UBS and Merrill Lynch to "assist the board of Saga in exploring a possible IPO".
The announcement came after reports suggested that Saga's owner Charterhouse Capital Partners, which backed a management buy-out for £1.35bn in October 2004, was considering a sale or flotation.
