Shareholder approval for Standard Life Aberdeen Asset merger deal

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Shares in Aberdeen Asset Management and Standard Life rose 5% and 2% respectively after it was announced that shareholders have backed the £11bn tie-up between the two companies.

The new firm will be led by Keith Skeoch and Aberdeen boss Martin Gilbert with a 16-member board and will be called Standard Life Aberdeen.

Simon Troughton, chairman of Aberdeen Asset Management, said “We are pleased with the overwhelming support Aberdeen shareholders have shown for the proposed merger.

“They recognise the strategic and financial rationale of the transaction which will create the UK’s largest active asset manager and one of the top 25 globally.

“This deal opens up significant opportunities across all facets of Aberdeen’s business and is an important step towards realising the company’s ambition of creating a world-class investment business with a truly global footprint.”

If it gets the green light from the Competition and Markets Authority, the merger will create Europe’s second-biggest fund manager with £670bn under management.

The joint firm plans on trimming 800 jobs from the 9000 workforce over three years to achieve cost savings of £200m a year.

Standard Life chairman Sir Gerry Grimstone said: “I’m delighted our shareholders have voted to support the merger today.

“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.

“There are still some approvals to be granted before the merger can complete and I know the teams in both companies are working through these diligently.

“We are still on track for a completion date of Monday 14 August and will keep our shareholders informed of developments.”

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