Standard Life and Aberdeen Asset Management deal goes through for £11bn

The deal would create one of the world’s industry powerhouses, overseeing £660 billion worth of global assets.

Under the terms of the potential merger, Aberdeen shareholders would own 33.3% and Standard Life shareholders would own 66.7% of the combined group.

However, it is thought several hundred jobs are at risk in Scotland and in the City as the duo pointed to cost savings that could add up to £200 million.

Keith Skeoch, chief executive of Standard Life, said: “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.”

Following completion of the merger, which values Aberdeen at £3.8 billion, Standard Life chairman Sir Gerry Grimstone will become chairman of the combined entity.

Mr Skeoch and Aberdeen boss Martin Gilbert will become co-chief executives of the new firm.

The companies said the deal was still subject to a number of conditions, including shareholder approvals, but recommended that investors vote the deal through.