Standard Life and Aberdeen Asset Management Confirm $13.5Bn Merger Talks

Company - Pavan Pandey - Mar 06,2017

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standard life and aberdeen asset management confirm 135bn dollars merger talks

Scotland’s two most well-known financial company, Standard Life and Aberdeen Asset Management are in talk to form Britain’s largest investment manager.

According to the Standard Life Plc and Aberdeen Asset Management Plc, they are exploring a £11 billion ($13.5 billion) unification in a step that would establish one of the largest fund managers of Britain’s.

If the merger of two biggest financial firms (Standard Life Plc and Aberdeen Asset Management Plc) goes ahead then it is fixed that hundreds of jobs could be layoff after the merger.

The talks of this merger were revealed at the weekend and the finalization of this tie-up could take place on Monday.

The financial companies mentioned in a combined statement the merger would accelerate profits by forming major synergies and cost saving. They also refer that the most of the cost saving are estimated to come from removing any overlap of back-office operations like IT and by lay-offing jobs and closing offices.

Under the terms of the deal, Standard Life Plc would own two-thirds (66.7 percent) of the combined group (a group that would control £660 billion worth of assets) and Aberdeen would own 33.3 percent.

Sir Gerry Grimstone, the chairman of Standard Life, would become the chairman of the board of the combined group, while, Mr. Martin Gilbert (the chief executive officer of Aberdeen) and Keith Skeoch (the CEO of Standard Life), would become the co-chief executive officers of combined group.

The Aberdeen Asset Management employs 2,800 employees worldwide, comprising 1500 in the United Kingdom, while Standard Life has 6300 workers worldwide, including 5500 in the UK.

In recent years Standard Life has made its Standard Life Investments (SLI) asset management division. Aberdeen and SLI now manage approximately similar amounts of bonds, stocks and other assets.

Standard Life has a market value of £7.5 billion, which is twice than the size of Aberdeen’s market value (£3.7 billion).