CMA drops investigation into £3.8bn Standard Life and Aberdeen Asset Management merger

 
Rebecca Smith
The firms are hoping it'll be smooth sailing for the merger
The firms are hoping it'll be smooth sailing for the merger (Source: Getty)

The competition watchdog has dropped its investigation into the proposed merger between Standard Life and Aberdeen Asset Management.

The Competition and Markets Authority said it had completed a review of the two firms' proposed merger and cleared the transaction unconditionally.

Last week month the watchdog announced it was launching an inquiry into the takeover, looking at whether the deal will "result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services".

Read more: The competition watchdog is shaking up how it investigates small mergers

It comes after shareholders of both companies voted to approve the merger earlier this week.

Some 98.6 of shareholders in Standard Life, which announced its £3.8bn takeover deal for Aberdeen in March, voted in favour of the merger. It also won 94.6 per cent approval for the directors’ remuneration policy as part of the deal.

On the Aberdeen side, 95.8 per cent of votes were in favour of the tie-up, and 78.6 per cent approved the exec pay motion.

Standard Life chairman Sir Gerry Grimstone said the firms were on track to complete the deal by 14 August.

Last month it emerged that the combination will result in the loss of 800 jobs, around nine per cent of the current combined 9,000 employees.

Both firms will pay out £35m in retention bonuses in order to keep their top executives on board.

Read more: Standard Life and Aberdeen keep it fair on new investment committee

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