According to sources, the UK insurer is expec­ted to finalise a deal with Rabobank by December.

It is also understood that once it holds Friends’ stake, Rabobank will try to acquire the rest of F&C which has a market value of £378million.

F&C has been on the market since January, when Friends Provident ann­oun­ced it was looking to dispose of its non-core assets.

Despite initially attracting a number of bidders, including Aberdeen Asset Manage­ment and Resolution Asset Management, Rabobank is the only buyer still in the running for F&C.

The rival fund managers were interested only in F&C’s investment trust and green funds businesses and were unwilling to meet the full asking price. “Rabobank is the only game in town,” said one source.

Friends intends to distribute the proceeds of the F&C disposal among its shareholders.

An announcement is expected to coincide with Friends Provident’s third-quarter results, due at the end of the month.

Last week Japanese bank Mitsubishi UFJ Trust & Banking Corporation took a 10 per cent stake in Aberdeen Asset Management.

Separately, the sale of Insurance Australia Group’s (IAG) UK assets is under way. IAG owns insurance groups Hastings, Advantage and Equity Insurance.

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