The proposed mega merger between Standard Life and Aberdeen Asset Management which is expected to create Europe’s second largest fund company will likely result in 800 job losses, the two companies have said.
The job losses, to be implemented within three years of the looming merger, will amount to almost 10% of the current 9,000-strong combined global workforce of the two investment giants.
In March, the two Scottish firms announced that an £11 billion (€13.1 billion) all-share deal would eventually result in £200 million in annual cost savings.
In a regulatory statement issued after yesterday’s market close, the firms said that the new combined entity would be called Standard Life Aberdeen – although an investment management subsidiary will be called Aberdeen Standard Life.
Standard Life also yesterday published a trading update which claimed that it had “made further progress” in the first three months of 2017 with net inflows of £3.1 billion, excluding £2.8 billion of outflows from its flagship Global Absolute Return Strategies investment product.
The merger between Edinburgh-based Standard Life and Aberdeen is expected to complete by mid-August after shareholders in both firms have voted on the deal in June.
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