Non-standard life

6 Mar 2017 By Neil Unmack Follow @unmack1

The Scottish asset manager is effectively taking over rival Aberdeen without paying a premium. That cushions it from the risk that teams don’t get on and clients snaffle the benefits. Yet embattled Aberdeen boss Martin Gilbert has also done better than might have been expected.

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Standard Life and Aberdeen Asset Management agreed to merge. Aberdeen shareholders will receive 0.757 new Standard Life shares for each of their own shares, giving them 33.3 percent of the enlarged group, the companies confirmed on March 6.

Cost savings from the merger will be an estimated 200 million pounds a year, to be achieved three years after the merger is complete. The cost of getting those savings would be around 320 million pounds.

The chief executive role will be split between Standard Life boss Keith Skeoch and Aberdeen’s founder and Chief Executive Martin Gilbert. Standard Life’s chairman, Gerry Grimstone, will continue to chair the new company.

Standard Life shares rose as high as 9 percent in early morning trading, and were trading at 398 pence per share at around 1000 GMT, up 5 percent versus the close on March 3.

Aberdeen shares were up 4 percent at around 1000 GMT, at 298 pence a share.

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Scot asset managers try marriage of inconvenience

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Standard Life shares rose as high as 9 percent in early morning trading, and were trading at 398 pence per share at around 1000 GMT, up 5 percent versus the close on March 3.

Aberdeen shares were up 4 percent at around 1000 GMT, at 298 pence a share.

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