Shareholders in UK fund manager Standard Life have voted in favour of the proposed all-share merger with peer Aberdeen Asset Management, a tie-up which will create the number 3 player in Europe in terms of real estate under management.
An overwhelming majority (98.6%) of Standard Life shareholders backed the merger plans during a meeting on Monday. The move will create a company with €50.3 bn of property assets, based on real estate AUM in 2015, according to research by PropertyEU.
This would put it behind AXA Investment Managers – Real Assets (€54.2 bn) and the number one player Swiss Life Asset Managers (€62.2 bn). Aviva Investors, which ranked third in 2015 with real estate AUM of €43.5 bn, would move to fourth place.
Sir Gerry Grimstone, chairman of Standard Life, said the merger with Aberdeen will be ‘one of the most significant events in our near-200 year history’, creating a ‘well-diversified world-class investment company’.
He said the tie-up was still conditional on a number of approvals, but that the two companies were on track for a completion date of 14 August.
Simon Troughton, chairman of Aberdeen Asset Management, commented: "We are pleased with the overwhelming support Aberdeen shareholders have shown for the proposed merger. 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. The two businesses' investment capabilities and distribution channels are highly complementary and by combining them we are well positioned to compete in an evolving global market environment.'
Under the merger agreement, Martin Gilbert from Aberdeen and Keith Skeoch from Standard Life will both continue as joint chief executives.
The company will be headquartered in Scotland and will comprise equal numbers of Standard Life and Aberdeen directors.
