Standard Life, Aberdeen Shareholders Agree On £11B Merger

Jun 19 2017 | 10:14pm ET

Shareholders of Standard Life and Aberdeen Asset Management have approved the £11 billion merger of their two companies, setting the stage for the creation of what will be one of the largest active investment managers in the world.

The merger was approved by more than 98% of Standard Life’s shareholders and 95% of Aberdeen’s, according to results released on Monday. The transaction is now expected to close on August 14th, pending various regulatory approvals. Once merged, the new entity will reportedly be named Standard Life Aberdeen and become Europe’s second largest money manager with £670 billion in AUM. 

"Our merger with Aberdeen will be one of the most significant events in our near-200 year history, creating a well-diversified world-class investment company,” said Sir Gerry Grimstone, Standard Life’s chairman, in a statement. “Employing some of the best talent in our industry, our new combined company will continue to put our customers and clients across the world at the center of everything we do.”

The two British financial services giants agreed on an all-stock merger back in March of this year. At the time, the companies said they expected synergies of approximately £200 million per year from the combination increasing competition from passive index-driven management and roboadvisors.

Aberdeen was founded in 1983 and has since grown to a global asset manager with expertise in emerging markets and some £308 billion in AUM as of the end of March 2017. The company’s alternatives platform encompasses multi-manager research, selection and portfolio management for hedge fund strategies, private debt and credit strategies, real asset investments and direct investments in infrastructure projects.

Standard Life's investments unit, meanwhile, was launched in 1998 as a wholly-owned subsidiary of Britain’s Standard Life Plc, which itself was begun as a life insurance company in Edinburgh in 1825. It had around £278 billion in assets under management and £357 billion in assets under administration as of December 2016.


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