EuropeSouth AsiaAsia PacificAmericasMiddle EastAfricaBBC HomepageWorld ServiceEducation
News image
News image
News image
News imageNews image
News image
Front Page
News image
World
News image
UK
News image
UK Politics
News image
Business
News image
Sci/Tech
News image
Health
News image
Education
News image
Sport
News image
Entertainment
News image
Talking Point
News image
In Depth
News image
On Air
News image
Archive
News image
News image
News image
Feedback
Low Graphics
Help
News imageNews imageNews image
Thursday, September 16, 1999 Published at 14:03 GMT 15:03 UK
News image
News image
Business: The Company File
News image
AA members accept takeover
News image
Millions of AA members will receive windfalls
News image
Members of the Automobile Association have voted overwhelmingly in favour of a �1.1bn ($1.78bn) bid for the mutually owned roadside breakdown group from the energy supplier, Centrica.

In a statement released at the end of a special general meeting, the AA said 96% of the votes cast by proxy ahead of the meeting were in favour, on a turnout of about 67% of the four-million members eligible to vote.

Members will receive windfall payments of �248 each by the middle of next month.

The AA Committee had recommended acceptance of the offer by Centrica.

Established

Founded in 1905, the AA currently has 48% of the car breakdown services market.


[ image: Centrica's main business is gas]
Centrica's main business is gas
It said the deal would allow it to finance the quality of service its members required.

"Members will not see an awful lot of difference after the sale, except better services," it said. "We have got to keep up with the competition and this is the only way forward."

Centrica - better known to most people as British Gas in England and Wales and Scottish Gas in Scotland - plans to draw the AA's roadside breakdown, insurance and financial services activities into its growing portfolio of home services.

The company already has interests in electricity supply, credit cards, home insurance, and plumbing and domestic appliance repairs.

'Scope for growth'

Centrica chief executive Roy Gardner said that only 25% of British Gas customers were AA members, with probably a further 25% belonging to other breakdown organisations.

"That gives us a lot of scope for growth," he said.

The company has committed itself to maintaining and improving the AA's services, and has also said that the AA will retain its role as an independent voice for motorists.

However, it also plans to make savings at the AA, through job cuts.

News image


Advanced options | Search tips


News image
News image
News imageBack to top | BBC News Home | BBC Homepage |
News image

News imageNews imageNews image
The Company File Contents
News image
News imageNews image
Relevant Stories
News image
09 Sep 99�|�The Company File
British Gas...Phone...Electricity..AA
News image
08 Sep 99�|�The Company File
AA members' votes go in
News image
08 Aug 99�|�The Company File
AA members vote on sell-off
News image
05 Jul 99�|�The Company File
Centrica buys the AA
News image

News image
News image
News image
News imageInternet Links
News image
News imageNews image
Centrica
News image
Automobile Association
News image
News imageNews image
The BBC is not responsible for the content of external internet sites.

News image
News image
News image
News imageIn this section
News image
Microsoft trial mediator welcomed
News image
Vodafone takeover battle heats up
News image
Christmas turkey strike vote
News image
NatWest bid timetable frozen
News image
France faces EU action over electricity
News image
Pace enters US cable heartland
News image
Mannesmann fights back
News image
Storehouse splits up Mothercare and Bhs
News image
The rapid rise of Vodafone
News image
The hidden shopping bills
News image
Europe's top net stock
News image
Safeway faces cash demand probe
News image
Mitchell intervenes to help shipyard
News image
New factory creates 500 jobs
News image
Drugs company announces 300 jobs
News image
BT speeds internet access
News image
ICL creates 1,000 UK jobs
News image
National Power splits in two
News image
NTT to slash workforce
News image
Scoot links up with Vivendi
News image
New freedom for Post Office
News image
Insolvent firms to get breathing space
News image
Airtours profits jump 12%
News image
Freeserve shares surge
News image
LVMH buys UK auction house
News image
Rover - a car firm's troubles
News image

News image
News image
News image