The Liberty Group said on Tuesday it believes the merger process with Capital Alliance provides the ideal opportunity to restructure the two businesses to obtain maximum synergies.
The group said now that the merger has been sanctioned by the high court, it is possible to communicate some of its thinking on the proposed post-merger structure for the combined group.
“Internally, at a senior level, we have indicated for some time our intention to restructure Liberty Life, and while some initiatives have commenced in this regard, we believe the merger process provides us with an ideal opportunity to propose a full restructure of the two businesses to obtain maximum synergies within the organisation,” it said in a statement.
“In essence, the proposed new structure will create a front and back office and, where practical, centralise support functions to leverage the benefits of both best practice and efficiency, while providing effective support to the business.
“The integration of the front-office components, comprising product development, marketing and distribution, will be under the leadership of Rex Tomlinson. This integration is key to our continuing success in terms of new product innovation and strengthening our distribution capabilities.
“Ian Kirk will head up the back-office activities that relate primarily to the administration of the combined businesses.”
The first impact of the merger and proposed restructure has been changes in the senior executive team’s reporting lines, it said.
“This team sees an integration of Liberty Life and Capital Alliance executives, who will be tasked with ensuring that management and staff are engaged in determining the appropriate structures in their areas of responsibility.”
Myles Ruck, CE of Liberty Life, added: “The merger of Liberty Life and Capital Alliance is a significant milestone. It is the start of an exciting new era for both companies as we jointly tackle the challenges of the merger and proposed restructure.” — I-Net Bridge