SAGA and the AA announced surprise merger plans today in a move creating a motoring and insurance giant worth £6 billion.

Saga, which specialises in insurance and travel for the over-50s, will establish a new holding company with the AA, which boasts 15 million motorists as members.

Both companies are owned by private equity firms - Saga is controlled by Charterhouse while the AA is owned by Permira and CVC.

Tweet