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Standard Life, Aberdeen in $A18b merger

Press Association logoPress Association 6/03/2017

Standard Life and Aberdeen Asset Management have agreed terms on an STG11 billion ($A18 billion) merger that will create Britain's biggest asset manager.

The deal would create one of the world's industry powerhouses, overseeing STG660 billion worth of global assets.

Under the terms of the potential merger, Aberdeen shareholders would own 33.3 per cent and Standard Life shareholders would own 66.7 per cent of the combined group.

However, it is thought several hundred jobs are at risk in Scotland and London as the duo pointed to cost savings that could add up to STG200 million.

Keith Skeoch, chief executive of Standard Life, said: "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."

Following completion of the merger, which values Aberdeen at STG3.8 billion, Standard Life chairman Gerry Grimstone will become chairman of the combined entity.

Skeoch and Aberdeen boss Martin Gilbert will become co-chief executives of the new firm.

The companies said the deal was still subject to a number of conditions, including shareholder approvals, but recommended that investors vote the deal through.

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