Royal London and LV=, two large mutual providers, have abandoned merger talks, both firms confirmed today.

Royal London confirmed this morning that it was in “exploratory” takeover talks with rival mutual LV=.

Royal London confirmed today it was offering exclusive talks with fellow mutual LV= about a possible merger after a £530m bid by US private equity firm Bain Capital for LV= collapsed last week.

LV= chairman Alan Cook is to step down after a £530m recommended deal by a US private equity firm to take over the mutual failed to win enough support from LV= members.