800 jobs to go in Standard Life-Aberdeen Asset merger
The proposed Â£11 billion merger between Standard Life and Aberdeen Asset Management (AAM) is expected to result in the loss of about 800 jobs, documents have revealed.
The posts are due to be cut over three years across the companies. Edinburgh-based Standard Life employs about 6,300 people and AAM has some 2,700 staff.
Bosses said they expect “natural turnover” to account for some of the reductions, while other steps will be taken to minimise compulsory redundancies.
The information is contained in a detailed prospectus published by Standard Life on the deal, which would create one of the world’s industry powerhouses, overseeing £660 billion worth of global assets.
The merger of Edinburgh-based Standard Life and AAM is aimed at creating cost savings that could add up to £200 million a year.
The prospectus for shareholders stated “there will be a need to maximise operational efficiencies and cost synergies” to achieve the expected benefits of the merger.
“At this time it is estimated that the integration and restructuring will result in a phased reduction of approximately 800 roles from the total global headcount of the combined group as at 31 December 2016 of approximately 9,000 over the three-year integration period,” it said.
“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.”
The document further reveals that the newly-merged company will be renamed Standard Life Aberdeen.
Both companies have agreed on a 16-strong board made up of an equal number of Standard Life and Aberdeen directors.
Standard Life chairman Sir Gerry Grimstone will be the chairman of the newly-merged company while AAM’s chairman Simon Troughton will become deputy chairman.
Keith Skeoch, the Standard Life chief executive, and AAM boss Martin Gilbert will become co-chief executives of the new firm.
The two companies agreed the terms of the merger, which will create Britain’s biggest asset manager, in March.
Under the terms of the deal, AAM shareholders would own 33.3 per cent and Standard Life shareholders would own 66.7 of cent of the combined group.
A general meeting has been scheduled for 19 June at which shareholders will be asked to approve the merger. If backed, the deal is expected to be closed by mid-August.
In a letter to shareholders, Grimstone said: “This merger would bring together two fine companies and I’m greatly honoured to be asked to chair the combination. We will be successful as long as we continue to put our clients, customers, employees and good governance at the heart of what we do.”