Standard Life and Aberdeen agree merger
News
by
Louisa Clarence-Smith and Karl Tomusk
Standard Life and Aberdeen Asset Management have agreed terms on an all-share mega-merger which will pool their combined £37bn of property assets under management.
Standard Life has £15.8bn property assets under management. Aberdeen has £21.2bn of property assets under management.
The merger will see the combined group headquartered in Scotland. It has been estimated that as many as 1,000 jobs could be at risk. However, Martin Gilbert, chief executive of Aberdeen, told BBC Radio 4 this morning that figure was “way way exaggerated”.
Standard Life and Aberdeen Asset Management have agreed terms on an all-share mega-merger which will pool their combined £37bn of property assets under management.
Standard Life has £15.8bn property assets under management. Aberdeen has £21.2bn of property assets under management.
The merger will see the combined group headquartered in Scotland. It has been estimated that as many as 1,000 jobs could be at risk. However, Martin Gilbert, chief executive of Aberdeen, told BBC Radio 4 this morning that figure was “way way exaggerated”.
David Paine is head of real estate investments at Standard Life. Pertti Vanhanen is head of fund management, property, at Aberdeen Asset Management.
Following the deal, Keith Skeoch, chief executive of Standard Life, and Martin Gilbert, chief executive of Aberdeen, will become co-chief executives of the combined group.
Aberdeen will control 33.3% of the group while Standard Life will own the remaining 66.7%.
Aberdeen opened this morning at 5.8% above Friday’s close. However, it was down 40% from its peak in April 2015.
Aberdeen Asset Management share price
Standard Life share price
Asked whether the firm was pressured into the deal, Gilbert said: “We didn’t have to do the deal. We’re carrying £500m of cash, we still make £300-400m a year.
“We did this deal because we genuinely believe this combined company will be better. Two and two make five here, not two and two making three. Let me be absolutely clear, we would have a very, very good future if we wanted as an independent company.”
Skeoch said: “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.”
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