Saga, which specialises in selling to the over 50s, is to merge with the AA in a deal valuing the combined firm at £6.15 billion. The deal will create a company with more than 11,000 employees, would value the AA business at about £3.3 billion. Permira and CVC bought the AA for £1.7 billion in 2004.

Chief executive, Tim Parker, who previously ran Kwik-Fit for CVC and who implemented cuts to the AA’s loss making mobile tyre fitting business, is expected to gain between £40 million and £80 million from the deal. Parker is estimated to have gained £20 million following the sale of Kwik-Fit.

Referring to the AA/Saga merger, Paul Maloney, national officer of the GMB union commented: “By our reckoning, the managing partners stand to make £300 million from owning the AA for less than three years…This money was made on the back of sacking 3,500 people, cutting wages and call centre staff and lengthening the working day.”