AAM snaps up £250m Credit Suisse division

Published on Wednesday 31 December 2008 09:10

ABERDEEN Asset Management has today announced it is to buy the UK asset management division of Credit Suisse in a deal worth around £250 million.

The Scottish company, which has an office at 40 Princes Street in Edinburgh, will become the UK's biggest independent fund manager following the deal.

The deal will be paid for in shares rather than cash – with Credit Suisse set to become Aberdeen's largest shareholder with a stake of around 25 per cent. As part of the deal, Aberdeen's products will also distributed through Credit Suisse's private bank.

Aberdeen, whose portfolio includes a number of properties in Edinburgh, is now set to expand its presence in the UK, Australia, Germany, Switzerland and Japan.

After the deal, it will have around 170 billion of funds under its management.

Shroders had been in the running for the UK asset management arm of Credit Suisse but it is thought it pulled out because the company wanted a deal completed before the year-end.

Martin Gilbert, chief executive at Aberdeen, said: "The acquisition confirms Aberdeen's position as a leading global asset manager and provides us with greater access to the distribution network of Credit Suisse and its private banking division, one of the world's largest wealth managers.

"Given our proven track record of integrating businesses, we are well placed to ensure a smooth transition of the Credit Suisse assets to Aberdeen."

He added: "We believe that this transaction will be for the long-term benefit of all our shareholders."

Mr Gilbert has masterminded a series of transformational deals for the company, including five deals in the last year.

Rob Shafir, chief executive of Credit Suisse's asset management division, said: "We believe this transaction offers our clients a compelling opportunity, providing them with access to an enhanced suite of investment products provided by a premier manager."

"It also enables us to maximise the value of our global investors business and benefit from our new partner's advantages of scale in a consolidating marketplace."

It is expected that the deal will be completed by the end of June 2009. The move will require approval from shareholders of both companies before being finalised, although Aberdeen's current biggest shareholder, Toscafund, has already indicated its support.

Martin Hughes, chief executive of Toscafund, said: "Toscafund has already confirmed its support for this transformational acquisition, which has been made possible by the excellent operating platform offered by Aberdeen.

"Toscafund believes that the transaction is of clear benefit to the clients and shareholders of Aberdeen Asset Management and Credit Suisse."