 and Aberdeen Asset Management (LON:ADN) have announced their intention to merge, clubbing together in an attempt to ward off pressure){kind=link}
Standard Life (LON:SL) and Aberdeen Asset Management (LON:ADN) have announced their intention to merge, clubbing together in an attempt to ward off pressure from an increasingly competitive industry.
The all-share deal was announced after a media leak on Saturday, with both parties confirming the merger talks over the weekend. The deal will create one of the UK’s largest fund managers, with around £660 billion in assets under management. The two companies combined will employ around 9,000 people.
The merger would see the joint company two-thirds owned by Standard Life’s shareholders, but with an equal split in management positions. Standard Life’s Chief Executive Officer, Keith Skeoch will jointly take the helm with the CEO of Aberdeen, Martin Gilbert.
The asset-management industry has been increasingly tough, with larger companies continuing to perform better. The deal between Standard Life and Aberdeen reflects the economic climate, enabling them to compete with US-based giants such as Blackrock.
Shares in Standard Life soared in early trading on Monday, currently up 5.94 percent at 401.00. Aberdeen Asset Management shares also rose 4.82 percent to 300.10 (0853MGT).