Standard Life /AAM merger wins overwhelming shareholder backing

Shareholders in Aberdeen Asset Management (AAM) and Standard Life have overwhelmingly backed a merger of the two firms that will now create Europe’s second-biggest fund manager.

To be known as Standard Life Aberdeen, the industry giant will boast £670 billion of assets under management and a market capitalisation of more than £11 billion.

Heading into yesterday’s votes in Edinburgh and London, bosses at the two firm’s needed the support of 75 per cent of AAM investors and 50 per cent of Standard’s 1.2 million shareholders mobilised since its demutualisation.

In the event, more than 95 per cent of investors at Granite City based AAM and 98 per cent at Standard Life voted in favour of the deal at general meetings held yesterday.

As per plans revealed ahead of the vote, the enlarged company will be headed jointly by Aberdeen founder and chief executive Martin Gilbert and his counterpart at Standard Life, Keith Skeoch.

AAM chairman Simon Troughton said the shareholders’ vote result was a “landmark”.

He added: “They recognise the strategic and financial rationale of the transaction which will create the UK’s largest active asset manager and one of the top 25 globally.

“This deal opens up significant opportunities across all facets of Aberdeen’s business and is an important step towards realising the company’s ambition of creating a worldclass investment business with a truly global footprint.”

The deal also faces regulatory scrutiny, with the Competition and Markets Authority last month launching an investigation to ascertain if the tie-up could harm competition within the industry.

Standard Life chairman Sir Gerry Grimstone said: “There are still some approvals to be granted before the merger can complete and I know the teams in both companies are working through these diligently.

“We are still on track for a completion date of Monday, August 14, and will keep our shareholders informed of developments.”

Meanwhile, Sir Gerry also moved to downplayed speculation that had emerged ahead of yesterday’s vote that talks over a tie-up with Scottish Widows were imminent.

Asked about a potential merger with Scottish Widows, he said Standard Life already has plenty to occupy itself with the Aberdeen deal.