LONDON”•British fund management firms Standard Life and Aberdeen Asset Management said Monday that they have agreed to merge, creating a European giant worth some £ 11 billion ($13.5 billion, 12.7 billion euros).
The deal was billed as a merger but Standard Life shareholders will have overall control with a 66.7-percent stake in the new company. Aberdeen will hold the remaining 33.3 percent.
Aberdeen investors will receive 0.757 new Standard Life ordinary share for each share they already own, valuing the asset manager at £3.8 billion.
“The boards of Standard Life plc and Aberdeen Asset Management plc are pleased to announce that they have reached agreement on the terms of a recommended all-share merger,” the pair said in a statement.
The combined business will oversee assets worth a total of £660 billion”•making it one of the largest investment managers in the world. It will be headquartered in Scotland and have 9,000 staff worldwide.
“We have always been clear that it is Standard Life’s ambition to become a world-class investment company and that this would be achieved through continued investment in diversification and growth, coupled with a sharp focus on financial discipline,” said Standard Life chief executive Keith Skeoch.
“We are therefore delighted that this announcement marks another important step towards achieving that ambition.”
He added: “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.”
The two groups, which had announced that they were in talks over the weekend, aim to complete the merger in the third quarter subject to regulatory approvals.
“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,” added Aberdeen chief executive Martin Gilbert.