The planned merger of Standard Life and Aberdeen Asset Management will result in the loss of 800 jobs, the companies announced this evening in a prospectus for investors.
Around nine per cent of the approximately 9,000 employees will lose their jobs over the three-year integration period as the new company, to be called Standard Life Aberdeen, seeks “cost synergies”.
The £11bn tie-up was first agreed in March before it was leaked days ahead of an announcement. They previously expected £200m in annual cost savings, although there will be £320m in “one-off integration cash costs”.
With £670 billion of combined assets under administration, the new company will be easily the UK’s largest active asset manager and the second largest in Europe.
The firms also revealed the structure of the new 16-member board, four of whom are women, with equal representation from both sides of the deal if the merger is completed.
Current Standard Life chairman Sir Gerry Grimstone will keep his role in the new investment management giant, with his counterpart at Aberdeen, Simon Troughton, becoming deputy chairman.
Grimstone said: “The directors on both boards have extensive global experience and have provided effective stewardship to grow each organisation. We have been able to create a diverse board which will have a strong blend of appropriate skills and knowledge.”
The new company will be based in Scotland, although the prospectus noted a potential second independence referendum in Scotland might “have a material adverse effect”.
Standard Life also announced it had “made further progress” and had seen inflows of £3.1bn in “growth channels”.
Keith Skeoch, chief executive of Standard Life, said: “We continue to benefit from diversifying our sources of assets, and this strategy will be further enhanced by our proposed merger with Aberdeen.”