Financial services group ASR Nederland has reached agreement to take over Aegon’s Dutch operations, creating a new big player on the Dutch market, alongside Nationale Nederland.

ASR is paying €4.9 billion for Aegon through a combination of cash and new shares.

The new combine will have 6.5 million clients in the Netherlands and a workforce of 6,700.  It will also be Dutch private pensions market leader and number two for life insurance.

The name Aegon will be phased out in the Netherlands over the next few years but will remain active abroad. The company is particularly strong in the US, where it bought insurance company Transamerica in 1999.

‘Combining Aegon Nederland’s business on our platform will reinforce our strengths in the Dutch market, significantly enhance our strategic positioning across both life and non-life and improve our distribution and services capabilities, ASR chief executive Jos Baeten said in a statement.