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Two giants in the insurâ€" ance industry have combined operations to form a Canadianâ€"based powerhouse. The Clarica Life Insurance Company, based in Waterloo, and Sun Life Financial _ Services _ of Canada Inc. announced a definitive agreement Monday to merge based on their shared vision of a worldâ€"class international financial services instituâ€" tion _ headquartered _ in Canada. Sun Life takes over Clarica The deal will see Clarica, a 130â€"yearâ€"old Canadian insurance provider, become a whollyâ€"owned subsidiary of Sun Life Financial Services of Canada Inc., maintaining the Clarica name. The combined operation will be based in Waterloo. Under the terms of the agreement, Clarica‘s comâ€" mon _ shareholders â€" will exchange â€" each â€" Clarica share for 1.5135 common shares of Sun Life Financial Services of Canada Inc. The transaction, which is subject to approval by the minister of finance, regulaâ€" tors in Canada and the U.S., RxqroeqpzssA8$ 430 Albert Si. Waterioo $84â€"0550 CW TWEED & Son LTD. Since 1925 13 King St. N. (at Erb) Waterioo, ON 886â€"2710 | __em aus May you and yours have a safe, happy holiday. Best wishes. BLESSINGS Greetings! and Clarica‘s shareholders and _ policyholders, _ is expected to close next spring. The impact on jobs will not be known until the inteâ€" gration planning process is complete, but it is anticipatâ€" ed that approximately 1,500 positions will be eliminated out of a combined total of However, no staff reducâ€" tions related to this transacâ€" tion will occur before June 30, 2002. Bob Astley, Clarica‘s president and chief execuâ€" tive officer, said the comâ€" bined Canadian operation will be more than the sum of its parts. "I view this as a tremenâ€" dous _ opportunity _ for Clarica and all our stakeâ€" holders," he said. "This transaction positions us very well to continue growâ€" ing an delivering on our brand promise to cusâ€" tomers who are seeking clarity and trusted advice in making complex financial decisions. "We are excited to build on our strengths in this country, as well as particiâ€" pate in the growth of a dynamic international organization." â€"~ _Donald A. Stewart, chairâ€" man and chief executive officer of Sun Life Financial, described the cultural and business affinities between these two leading Canadian financial services compaâ€" nies as an excellent strategic fit. "It rewards shareholders, benefits consumers and contributes to the strength of Canada‘s economy," he said. "The combination is expected to create lower cost structures, increased revenue and expanded distribution _ capabilities, which will deliver greater economic value to customers and shareholdâ€" While the combined Canadian operation will be based locally â€" _ while maintaining a significant presence _ in _ Toronto, Montreal and Ottawa â€" Sun Life Financial‘s corpoâ€" rate _ headquarters _ will remain in Toronto. Stewart _ will â€" remain chairman and CEO, and Astley will become presiâ€" dent of Canadian Operations. Astley will also continue as president and CEO of Clarica.