CVC Capital Partners and Permira, the European buy-out firms, have formed a consortium to buy the AA, the European car breakdown and financial services firm, for £1.75bn (€2.6bn). It is planning to float the business within five years.

Trevor Chinn, chairman of Kwik-Fit, the UK car servicing business owned by CVC, will become chairman of the AA, working alongside Tim Parker, Kwik-Fit's current chief executive, who takes on the same role at AA. The consortium insists, however, that there no plans to merge the two businesses.