Standard Life and Aberdeen AM confirm merger talks
Asset managers Standard Life and Aberdeen Asset Management have announced they are in advanced talks over a possible merger to create an £11bn company with more than £650bn of assets under management.
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Under terms of the mooted all-share merger, shareholders of Edinburgh-headquartered Standard Life would own 66.7% and Aberdeen's 33.3% of the combined group, though there would be an equal number of seats on the board for the two sides.
At the top, Standard Life chief executive Keith Skeoch and Martin Gilbert of emerging markets-focused Aberdeen would become co-CEOs of the combined group.
Standard Life's Gerry Grimstone was proposed as chairman of the board of the combined group, with Aberdeen’s Simon Troughton becoming deputy chairman.
Taking the chief financial officer would be Aberdeen's Bill Rattray, with Rod Paris of Standard Life becoming chief information officer.
In a joint statement, the pair said the potential merger 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.
- Create an investment group with strong brands, leading institutional and wholesale distribution franchises, market leading platforms and access to long-standing, strategic partnerships globally.
- Bring scale, as one of the largest active investment managers globally with £660bn of proforma assets under administration and financial strength, transforming the Combined Group’s ability to invest for growth, innovate and drive greater operational efficiency.
- Deliver through increased diversification an enhanced revenue, cash flow and earnings profile and strong balance sheet that is expected to be capable of generating attractive and sustainable returns for shareholders, including dividends.
- Result in material earnings accretion for both sets of shareholders, reflecting the significant synergy potential of a combination.