Two of the UK’s largest asset managers, Standard Life and Aberdeen Asset Management, are exploring a possible merger.
Under terms of the possible all-share merger, Aberdeen shareholders would own 33.3% and Standard Life 66.7% of the combined group.
The merger would create a company with £660 billion of assets, employing 9,000 people.
Keith Skeoch (pictured), CEO of Standard Life and Martin Gilbert, CEO of Aberdeen, would become co-CEOs of the combined group.
Bill Rattray of Aberdeen and Rod Paris of Standard Life would become CFO and CIO respectively.
Standard Life chairman Gerry Grimstone would become chairman of the board of the combined group, with Aberdeen’s chairman Simon Troughton becoming deputy chairman.
In joint statement from Aberdeen and Standard Life, the firms said ‘their long-term success has been built through differentiated, but complementary, strategies that have delivered attractive growth and returns for clients and shareholders’.
The duo said the potential merger represented an excellent opportunity to leverage Standard Life and Aberdeen’s combined strengths to create a world class investment company.
The pair highlighted seven compelling rationale for the merger:
* [It would] harness Standard Life and Aberdeen’s complementary, market leading investment and savings capabilities which would deliver a compelling and comprehensive product offering for clients covering developed and emerging market equities and fixed income, multi-asset, real estate and alternatives.
*Establish one of the largest and most sophisticated investment solutions offerings globally, positioning the combined group to meet the evolving needs of clients.
* Reinforce both Standard Life and Aberdeen’s long-standing commitment to active management, underpinned by fundamental research, with both global reach and local depth of resources.