Energy giant BP is reportedly in talks with multiple insurance providers over a possible record-breaking pension scheme deal.
Citing people familiar with the matter, the Financial Times said BP is looking to pass on its pension liabilities to insurers in a transaction that is potentially the largest in the industry’s history.
It was highlighted that a deal for BP’s £30 billion final salary pension fund in the UK would be bigger than the £6.5 billion in liabilities taken over by Pension Insurance Corporation from RSA earlier this year.
The defined benefit scheme, however, would not be sold in full, according to the report. BP, as indicated by a spokesperson, is opting for a buy-in instead of a buyout, the publication said.
More than 60,000 beneficiaries make up the final salary pension scheme, a transaction for which is not guaranteed at this point.
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