The deal will see Aberdeen shareholders owing around 33% of the combined group, while Standard Life shareholders will received 66.7%. The merged group will remain in Scotland, the companies said, and will have around £660 billion in assets under management, making it the second-largest in Europe behind Allianz SE (AZSEY) .
"The combination of our businesses will create a formidable player in the active asset management industry globally,£ said Standard Life's CEO Keith Skeoch. "We strongly believe that we can build on the strength of the existing Standard Life business by combining with Aberdeen to create one of the largest active investment managers in the world and deliver significant value for all of our stakeholders."
The deal values Aberdeen shares a 286.5 pence each, a modest premium to the 284.16 pence closing price in London Friday. The combined group will take a £320 million charge that will cover integration costs, the companies said.
Aberdeen shares surged 5.34% to 301.5 pence each in early London trading while Standard Life shares gained 6.71% to change hands at 404 pence each.