managers Aberdeen Asset Management and Standard Life have agreed terms to
create the UK’s largest fund manager.
Sir Gerry Grimstone and Simon Troughton will head up the newly merged firm
as chairman and deputy chairman respectively. Following
weekend reports of an £11bn takeover, the companies revealed they were
recommending an all-share merger this morning. The
combined group, which will oversee assets worth £660bn, will incorporate the
names of both Standard Life and Aberdeen.
completion of the merger, Aberdeen shareholders will own about a third of the
combined group, with Standard Life shareholders owning the remaining two
thirds.The division reflects Aberdeen’s £3.8bn market capitalisation and Standard Life’s £7.5bn value.
Life chairman Sir Gerry Grimstone will become chairman of the board, with
Aberdeen chairman Simon Troughton becoming deputy chairman.
Life and Aberdeen’s current chief executives, Keith Skeoch and Martin Gilbert,
would become co-chief executives, while Bill Rattray, of Aberdeen, and Rod
Paris, of Standard Life, will become chief financial officer and chief
investment officer respectively.
said: “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. We are therefore delighted that this announcement
marks another important step towards achieving that ambition.
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.”
companies also expect the board of the combined group will comprise equal
numbers of Standard Life and Aberdeen directors.
Gilbert, 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.”
morning, the group claimed the merger has a “compelling strategic and financial
combined group will be headquartered in Scotland.
Life shareholders will be entitled to receive the proposed final dividend of
13.35p per Standard Life share for the six-month period to 31 December 2016,
scheduled to be paid on 23 May 2017.
shareholders will be entitled to receive an interim dividend of up to 7.5p for
the six-month period to 31 March 2017, scheduled to be paid in June 2017.