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Shares in Standard Life have soared to the top of the FTSE 100 this morning, gaining over 9 per cent after it agreed the terms of a merger with Aberdeen Asset Management to create the UK’s biggest fund manager.
Aberdeen shares are up 8 per cent to 309p at the start of Monday’s trading in London, following confirmation of an estimated £11bn deal that values Aberdeen share at 286.5p.
Under the terms of the deal, Aberdeen shareholders will receive 0.757 of the merged group’s shares in exchange for each Aberdeen share.
Speaking on BBC radio this morning, Martin Gilbert, boss of Aberdeen who will become co-chief executive of the new group, confirmed there would be job losses where the two companies “overlapped”.
However, he described a figure of 1,000 losses as “exaggerated”, stressing the deal was more about how the two investment houses can work together.