The City roundup video: Aviva and Friends Life announce £5.6bn deal

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The biggest insurance merger for 15 years is officially on, after Aviva and Friends Life announced today they have agreed a £5.6 billion deal to combine.

But there are fears that the merger could lead to thousands of job cuts. Aviva says the merger will save £225 million a year but won’t say how many people will be let go

Analysts say as many as 2000 jobs could be axed. Aviva employs 12,000 people in the UK while Friends Life has 3,000 staff.