Standard Life in €3.8bn acquisition
Standard Life has agreed to acquire Aberdeen Asset Management for about £3.8bn (€4.4bn), a deal that will create the UK's largest active manager. The stocks soared in London trading.
Under the terms, Standard Life shareholders will own 66.7pc of the combined group. Aberdeen's investors will receive 0.757 new Standard Life ordinary share for each share they already own. That values Aberdeen in line with its market value before the talks were disclosed on March 4.
The deal, which will create a £660bn asset manager, is the latest move by the active management industry to combat a tide of investors shifting money to low-cost, passive funds. Aberdeen, hurt by weaker sentiment toward emerging markets, has suffered more than three years of redemptions, leading it to freeze salaries and cut costs. Standard Life's investment unit also had outflows last year. (Bloomberg)