Fund managers Standard Life, Aberdeen in merger talks

LONDON: British fund managers Standard Life and Aberdeen Asset Management confirmed they were in talks about a possible all-share merger, which reports said could be worth £11 billion (US$13.5 billion, 12.7 billion euros).

The move would create one of the world’s largest financial powerhouses, overseeing £660 billion worth of global assets.

“The boards of Standard Life and Aberdeen confirm that they are in discussions in relation to a possible all-share merger,” they said in a statement.

“Standard Life and Aberdeen’s long-term success has been built through differentiated, but complementary, strategies that have delivered attractive growth and returns for clients and shareholders.

“The potential merger represents an excellent opportunity to leverage Standard Life and Aberdeen’s combined strengths to create a world class investment company.”

The Financial Times newspaper said the deal could be worth some £11 billion.

Under the terms of the potential merger, Aberdeen shareholders would own 33.3 per cent and Standard Life shareholders 66.7 per cent of the combined group.

The statement said the potential merger would “establish one of the largest and most sophisticated investment solutions offerings globally.”

It said Standard Life chairman Gerry Grimstone would chair the combined group, with Aberdeen’s chairman Simon Troughton becoming his deputy.

Standard Life chief executive Keith Skeoch and his Aberdeen counterpart Martin Gilbert would become joint chief executives of the combined group, for which no new name has yet been put forward.

The board would have equal numbers of Standard Life and Aberdeen directors, it is envisaged.

“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,” the statement said. — AFP