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CVC, the buyout group and former owner of Formula One, has signed an agreement to buy shares from investors in Pension Insurance Corporation (PIC), the insurer of pension schemes at Cadbury, Siemens and ICI.

CVC is to acquire between 10-20 per cent of PIC, which would value the business at around £2bn, a person familiar with the transaction said.

RBS is understood to be selling its 4.3 per cent to CVC in the transaction, another person familiar with the move said.

Other PIC shareholders include JP Morgan, which has a 2.5 per cent stake, and Swiss Re, with a 4.3 per cent stake.

But it is unclear whether they are selling their shares in the specialist insurer and provider of bulk annuities to UK corporate pension schemes.

At 30 June 2016, PIC had £18.4bn in financial assets and had insured more than 130,000 pension fund members.

CVC was advised on the transaction by Jefferies, Ernst & Young, Oliver Wyman and Slaughter and May.

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