LONDON (AP) — Standard Life has agreed to buy Aberdeen Asset Management for 3.8 billion pounds ($4.7 billion) to create Britain's largest asset management firm.
Aberdeen shareholders will receive 0.757 Standard Life shares for each share they own, giving them 33.3 percent of the combined company. Keith Skeoch, chief executive of Standard Life, and Martin Gilbert of Aberdeen, will be co-chief executives.
The deal will merge two "active" fund managers, companies that try to use expertise to outperform the wider stock market. Active managers have struggled to achieve this since the financial crisis, leading investors to pull money out of their funds.
While the companies expect to cut costs by 200 million pounds after the merger, Gilbert told the BBC the goal is building a bigger fund manager that can compete better globally.