Old Mutual estimates closing London base will cost up to £65m

Announced managed separation in March

Old Mutual has outlined the expected costs involved in the managed separation of its business, which will involve the demerger of its UK wealth arm, with estimated costs of up to £65m for the wind down of its London head office.

The group said in a statement from its Capital Markets Day that a one-off cost of between £50m and £65m will be incurred for the winding down of its head office and activities in London, while demerging and listing Old Mutual Wealth (OMW) and Old Mutual Emerging Markets (OMEM) on the London and Johannesburg stock exchanges will have recurring incremental costs of between £5m and £10m per annum. The managed separation process is expected to be completed by the end of 2018. The group has promised "clear disclosure" surrounding costs and regular updates on the progress of the split, as w...