The newly formed Standard Life Aberdeen aims to push for better corporate governance.
Co-chief executive Keith Skeoch said that asset managers have a “big responsibility” to hold boards to account. “Trust among investors can also be rebuilt through asset managers’ role in supporting economic activity,” Skeoch told the Financial Times.
The new firm holds £670m in assets under administration. First announced in March, the merger has gone ahead after the Competition and Markets Authority cleared the deal two months ago.
The firms’ heads, Standard Life’s Skeoch and Aberdeen’s Martin Gilbert, become its co-chief executives. Aberdeen’s Bill Rattray is named as the group’s chief financial officer, while Standard Life’s Rod Paris is named chief information officer.
Standard Life’s Sir Gerry Grimstone becomes chairman of the new board, while Aberdeen chairman Simon Troughton was named its deputy.
The group said the deal “harnesses” the businesses’ complementary investment and savings capabilities, represented by its pensions and savings offering and asset management arm.
“By combining the two companies’ strong balance sheets, the combined group will have greater ability to invest for growth and innovate,” it said in a statement.
It is understood that the business will target cost savings of £200m a year, and see 800 jobs lost over a three-year period—leaving the business with 9,000 staff.
“Our leadership team is in place and we have full business readiness from day one,” said Skeoch. “The cooperation and collaboration we have witnessed bodes well for the ongoing integration of the business, and in helping us create a world-class investment company for our clients, shareholders and our people.”
Gilbert said: “The merger deepens and broadens our investment capabilities, and gives us a stronger and more diverse range of investment management skills as well as significant scale across asset classes and geographies.”