Scotland to join global investment high rollers as Aberdeen and Standard Life announce £11bn merger

Workers at Edinburgh-based insurance giant Standard Life are this morning thrashing out the details of a merger deal with counterparts at Aberdeen Asset Management that will see Scotland become home to the biggest asset management firm in the UK and the second largest in Europe.

News of the deal that would create a combined group controlling over £660bn in assets - four times the output of the entire Scottish economy - emerged over the weekend.

According to reports, the deal will see Aberdeen shareholders own 33.3 per cent and Standard Life shareholders 66.7 per cent of the new group that will incorporate both the Standard Life and Aberdeen names.

While Standard Life also has its more traditional pensions business, its fund management arm, Standard Life Investments, oversees funds of £269bn, while Aberdeen has £312bn of funds under management.

It is hoped that the move to join forces will result in a new business capable of taking on the global elites of their industry, such as American giants such as Blackrock.

In a joint statement issued over the weekend, they said a deal would “leverage Standard Life and Aberdeen’s combined strengths to create a world-class investment company”.

However, Aberdeen founder and chief executive Martin Gilbert said that there are likely to be job losses where there is duplication.

Between them the firms employ 9,000 people.

Standard Life chairman Sir Gerry Grimstone will become chairman of the merged company, with Aberdeen chairman Simon Troughton becoming deputy chairman.

Standard Life chief executive Keith Skeoch and Martin Gilbert will run the combined business.

Aberdeen’s Bill Rattray will become chief financial officer while Standard Life’s Rod Paris will become chief investment officer.