Aviva unveils deal to buy RAC

Norwich Union owner Aviva today unveiled a deal to buy motoring services group RAC for £1.1bn (€1.6bn).

Aviva said the addition of RAC’s brand and customer base would boost its general insurance business, which insures one in seven of all UK motor vehicles.

The proposed deal, which has the backing of the RAC board, came after a day of speculation that a bid was in the pipeline for the 108-year-old business.