TWO of Scotland’s most important financial companies are in talks about an £11billion merger that could see them re-launch as the UK’s largest fund manager, with assets worth £660bn.
Discussions, which could lead to a formal deal between Aberdeen Asset Management and Standard Life, jointly employing 9,000 people and see the creation of a new “global powerhouse”, were confirmed by the fund mangement companies yesterday evening. Speculation on the merger had previously been leaked and reported by Sky News.
If a deal can be agreed, shareholders for Standard Life which has a market value of £7.5bn – twice that of Aberdeen – would hold two thirds of the company. The combined company would be run jointly by Martin Gilbert and Keith Skeoch, the chief executives of Aberdeen and Standard Life.
Sky News reported that annual savings of the merger could be £200m, which has led to speculation that redundancies could be under discussion. One source told the FT that he would expect lots of job losses as a result.
In a statement Standard Life said the potential merger could "harness talent" and"create a world class investment company."
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