The creation of the biggest asset management group in Britain will kill 800 jobs

pulse

May 10, 2017 8:23 AM

Around 800 jobs will go as Standard Life and Aberdeen Asset Management agree to merger terms.

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The deal to create the UK's biggest asset management company will see 800 jobs cut over a three year period, according to a prospectus for shareholders.

The £11 billion merger between between investment company Standard Life and fund manager Aberdeen Asset Management will see the companies "achieve cost synergies where duplication exists," Standard Life's document said.

Around 800 roles will go from a combined workforce of 9,000.

"Synergies will come in part from employee departures arising from natural turnover. Other appropriate steps will be taken to minimise the number of compulsory redundancies, including the active management of Standard Life’s and Aberdeen’s recruitment and vacancies," Standard Life said.

The merger deal, agreed between the companies in March and yet to receive shareholder approval, will "create one of the largest active investment managers in the world" "around £670 billion of combined assets under management."

Shareholders of both companies will meet on

The prospectus also listed Brexit as a major risk factor, saying that the loss of the UK's financial passport to do business in the single market could force the new company to change its structure.

"The long-term effects of the UK leaving the EU will depend on any agreements (or lack thereof) between the UK and the EU and, in particular, on any arrangements for the UK to retain access to EU markets either during a transitional period or more permanently," the prospectus said. "As a result, the Standard Life Group, the Aberdeen Group or, if the Merger completes, the Combined Group may need to take mitigating action, or to change parts of their business."

A name has not been finally decided for the combined company although "Standard Aberdeen" is seen as the frontrunner for new group.

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