Standard Life and Aberdeen Asset Management confirm merger talks
     

Fund managers Aberdeen Asset Management and Standard Life have confirmed they are holding talks about a possible all-share merger.

It follows a report on Sky News that the companies were exploring an £11bn merger.

The move would create one of the UK's largest fund managers, overseeing £660bn-worth of assets.

The companies said the deal was subject to a number of conditions, including shareholder approvals.

Under the terms of the potential deal, Aberdeen shareholders would own 33.3% and Standard Life shareholders 66.7% of the combined group.

Standard Life chairman Sir Gerry Grimstone would become chairman of the board, with Aberdeen's chairman Simon Troughton becoming deputy chairman.

Standard Life and Aberdeen's current chief executives, Keith Skeoch and Martin Gilbert, would become co-chief executives.


Analysis

BBC Scotland business/economy editor Douglas Fraser

The logic of putting the firms together is to build investment clout, in competition with US-based giants such as Blackrock.

They want to assert that active management of funds can work for clients.

With those passive funds growing, this offers "significant synergy potential", which is likely to mean duplicate roles being shed.

At present, the companies employ around 9,000 people.

That clout as a shareholder can also be applied to shaping the decisions of companies in which the asset managers have stakes.

 


In a joint statement, the companies said: "It is envisaged that the board of directors of the combined group would comprise equal numbers of Standard Life and Aberdeen directors.

"The combined group would draw on the expertise across its markets and would endeavour to harness the talent in both companies to optimise the benefits for clients and shareholders of the combined group."

Last month Aberdeen reported big outflows from its funds following Donald Trump's victory in the US presidential election.

Aberdeen said investor sentiment "stalled" following the US election result.

Edinburgh-based Standard Life reported recently that it shook off industry "headwinds" last year to post a strong rise in profits.

Health

BUSINESS

Standard Life and Aberdeen Asset Management confirm merger talks
Fund managers Aberdeen Asset Management and Standard Life have confirmed they are holding talks about a possible all-share merger. It follows a report on Sky News that the companies were exploring an £11bn merger. The move would create one of the...
The Toyota logo is seen at the company's display during the North American International Auto Show in Detroit, Michigan, U.S., January 10, 2017. REUTERS/Mark Blinch
By Costas Pitas and Laurence Frost GENEVA (Reuters) - Japanese carmaker Toyota <7203.T> may delay a decision on whether to build its next-generation Auris model at its British car plant to see the outcome of Brexit negotiations, a senior executive...
1% فقط من النفايات المنزلية في السويد تذهب إلى القمامة
السويد ترحب بتوصل الاتحاد الأوروبي إلى اتفاق حول الانبعاثات الحرارية تعد السويد واحدة من أوائل الدول التي وضعت ضرائب عالية على الوقود الأحفوري العام 1991، كما يوجد لديها نظام إعادة تدوير عالي الكفاءة، بحيث يتم استيراد النفايات من البلدان الأخرى،...