British insurer Standard Life has confirmed media reports of a deal for Scotland’s Aberdeen Asset Management for a potential all-share merger.
Under the terms of the deal, which will see Standard Life acquire Aberdeen for £3.8 billion, Aberdeen shareholders will own 33.3% of the combined group while Standard Life shareholders will own 66.7%.
According to Standard Life, the proposed merger will create a company with £660 billion assets under management worldwide.
“Further to the recent press speculation, the boards of Standard Life and Aberdeen confirm that they are in discussions in relation to a possible all-share merger of Standard Life and Aberdeen,” the insurer said in a statement.
“The potential merger represents an excellent opportunity to leverage Standard Life and Aberdeen’s combined strengths to create a world class investment company.”
As part of the merger, Standard Life chairman Gerry Grimstone would take on the role of board chairman of the combined group, while Aberdeen’s chairman Simon Troughton would be appointed deputy chairman.
Standard Life CEO Keith Skeoch and Aberdeen CEO Martin Gilbert would become co-CEOs of the merged company. The Scottish firm’s Bill Rattray and the insurer’s Rod Paris would be named CFO and CIO respectively.
The board of directors of the new firm would comprise equal numbers of Standard Life and Aberdeen directors.
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