British financial services provider Standard Life has agreed to sell its Canadian activities to Manulife of Canada for £2.2 billion.

"Standard Life today announces the sale of its Canadian business to The Manufacturers Life Insurance Company, a subsidiary of Manulife Financial Corporation, for $4 billion," it confirmed in a statement to the London Stock Exchange.

Manulife had announced the deal overnight in Toronto.

Edinburgh-based Standard Life will return £1.75 billion of capital to shareholders, or 73 pence per share, following completion of the deal. 

The two companies also established a global agreement to distribute each other's products.