Proactive Investors - Run By Investors For Investors

Aberdeen Asset Management and Standard Life to cut 800 jobs as part of £11bn merger

The job losses are part of plans to generate £200mln a year in cost savings should the merger get the go-ahead from shareholders next month
standard life office front
The tie-up would create the UK’s biggest asset manager, overseeing roughly £660bn of assets

The planned £11bn merger between Aberdeen Asset Management PLC (LON:ADN) and Standard Life PLC (LON:SL.) will see the two fund managers cut almost 10% of their combined workforce.

The two Scotland-based companies said the job losses are part of plans to generate £200mln a year in cost savings as they look to create a global industry powerhouse.

Between them, Standard Life and Aberdeen currently employ around 9,000 people. The job cuts are likely take place over a three-year integration period rather than all coming at once.

A prospectus on the tie-up released by Standard Life read: “At this time it is estimated that the integration and restructuring will result in a phased reduction of approximately 800 roles.”

The fund managers pointed out that some of these job losses would come from the natural turnover employees, while they would take other steps to “minimise the number of compulsory redundancies”.

Standard Life Aberdeen

The prospectus also revealed to investors that the combined group would be renamed Standard Life Aberdeen. The new group will be headquartered in Scotland and it will continue to have offices around the world.

Both companies have also agreed on a 16-strong board made up of an equal number of Standard Life and Aberdeen directors.

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

READ: Merger is a bold gamble, says City broker

The deal, which will see Aberdeen shareholders own 33.3% of the combined group and Standard Life shareholders owning the remainder, was agreed back in March.

At next month’s general meeting shareholders will be asked to approve the merger, which would create the Britain’s biggest asset manager overseeing around £660bn of assets.

If it gets backing from shareholders, the deal is expected to go through by mid-August.

Shares in Standard Life and Aberdeen edged higher on Wednesday morning to 381.6p and 296.5p respectively.

View full SL. profile View Profile

Standard Life Timeline

Related Articles

Employee benefits
May 09 2019
The group provides various programmes including insurance plans, salary sacrifice schemes, discounts and rewards
stock market
The dividend for the year rose 3% to 20.67p and Chesnara’s solvency ratio strengthened to 158% of its regulatory requirement

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use