Pensions giant Just Retirement to buy rival for $1B

Britain's Just Retirement has agreed to buy rival Partnership Assurance for 669 million pounds ($1 billion) in shares, hoping greater scale and a stronger capital position will help it cope with changes that have rocked its industry. Pensions and savings firms have been hit hard by reforms that have removed the obligation for retirees to buy an annuity - a financial product providing income for life that has been a high-margin cornerstone of many companies' businesses. Under the terms of the deal, Just Retirement shareholders will own about 60 percent of the enlarged group, while Partnership shareholders will get 40 percent after receiving 0.834 shares in the new company for each Partnership share held.