AA To Be Sold?
Sunday November 26th and the Daily Mail supplement the Financial Mail has reported that the AA the UK's number one breakdown cover provider is preparing to be sold off. They currently have 15m million members and recorded a turnover of over £750m for 2005, this will mean there is likely to be several interested parties. There is also the possibility of floating the company which would mean the company would likely enter the FTSE 100.
Aviva which is owned by Norwich Union bought the RAC a few years ago and it seems the AA may go the same way, as motoringorganisations as we know it become more insurance related.
It seems the day of the traditional motoring organisation will be taken over by the insurance corporations and call centers. Unlike American Automobile Association, the AA only serves the UK market, where the AAA now has a global presence, of course this would reflect any growth in the market and future growth of the company.