1.1. This paper developed from an earlier paper given by the authors to the New Zealand Society of Actuaries. The authors were involved in acquisitions and mergers at a time when there was very little actuarial literature on the subject. Since then, the 1980 International Congress of Actuaries had as one of its subjects “Estimating the Value of Insurance Companies and Portfolios” and a wealth of papers appeared on the subject of pricing life funds. However, the aspect of merging life funds does not appear to have been covered to the same extent.