Financial services organisations Aberdeen Asset Management and Standard Life have agreed an all-share merger, subject to share holder approval.
The new combined group would be based in Scotland and re-branded to incorporate the names of both businesses.
The merger looks to bring together the organisations’ investment and saving capabilities to enhance its product offering, as well as increase scale globally and drive greater operational efficiencies.
Following the merger, Sir Gerry Grimstone, current chairman at Standard Life, would become chairman of the board of the combined group, and Simon Troughton, chairman at Aberdeen Asset Managament, would be deputy chairman. Keith Skeoch, chief executive officer at Standard Life, and Martin Gilbert, chief executive officer at Aberdeen, would serve as co-chief executive officers at the combined group. Bill Rattray and Rod Paris would take up the positions of chief financial officer and chief information officer, respectively.
The merger is subject to share holder approval and additional conditions. It is expected to come into effect in the third quarter of 2017.
Keith Skeoch, chief executive officer at Standard Life, said: “We have always been clear that it is Standard Life’s ambition to become a world-class investment [organisation] and that this would be achieved through continued investment in diversification and growth, coupled with a sharp focus on financial discipline.
“We are therefore delighted that this announcement marks another important step towards achieving that ambition. The combination of our businesses will create a formidable player in the active asset management industry globally. We strongly believe that we can build on the strength of the existing Standard Life business by combining with Aberdeen to create one of the largest active investment managers in the world and deliver significant value for all of our stakeholders.”
Martin Gilbert, chief executive officer at Aberdeen Asset Management, added: “We believe this merger is excellent for our clients, bringing together the strong and highly complementary investment capabilities of each firm with a breadth and depth of talent unrivalled amongst UK active managers and positioning the business to meet the evolving needs of clients and customers. This merger brings financial strength, diversity of customer base and global reach to ensure that the enlarged business can compete effectively on the global stage.”