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GKN completes pension buyout with PIC

Aerospace and automotive technology firm GKN PLC, Redditch, England, completed a £190 million ($233 million) buyout for its U.K.-based pension fund, a spokeswoman said.

Mercer advised the trustee of GKN Group Pension Scheme on the deal with Pension Insurance Corp. The size of the plan was not available by press time.

“This transaction marks an important step in the trustee's long-term strategy to reduce risk as and when opportunities arise, whilst protecting the benefits of its members,” Rufus Ogilvie Smals, chairman of the trustee, said in a news release.

“A further 20% of the liabilities of the original plan are now insured and the trustee believes that this is of benefit both to the members and to our corporate sponsor,” Mr. Smals said.

The buyout covers retired participants of the plan that have not been transferred to the new GKN defined contribution plan. The existing plan is in the process of being wound up.

Other advisers on the deal were Pinsent Masons and Cardano.

In the past, GKN completed two buy-ins with Rothesay Life valued at £123 million.