Standard Life and Aberdeen Asset Management are set to axe 800 jobs as part of their proposed merger.
The layoffs, which constitute around 10% of their combined workforce, are expected to help the firms save £200m in costs annually, Standard Life said in a merger prospectus. The job cuts will be carried out over three years.
The prospectus said: “At this time it is estimated that the integration and restructuring will result in a phased reduction of approximately 800 roles from the total global headcount of the combined group as at December 31 2016 of approximately 9000 over the three-year integration period.”
“Synergies will come in part from employee departures arising from natural turnover. Other appropriate steps will be taken to minimise the number of compulsory redundancies, including the active management of Standard Life’s and Aberdeen’s recruitment and vacancies,” the prospectus added.
The prospectus revealed that the name of the merged entity will be Standard Life Aberdeen, which will be based in Scotland. The all-share merger, announced in March 2017, is expected to lead to the creation of UK’s largest active asset manager with £660bn in assets under administration.
Under the arrangement, Standard Life shareholders would own 66.7% in the new company while Aberdeen shareholders would hold the remaining stake.
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The firms also stated that the deal, anticipated to close in August 2017, would cost around £320m in integration outlays.
The companies also unveiled the composition of Standard Life Aberdeen’s board that would include an equal representation of 16 members from each company. Aberdeen’s Martin Gilbert and Standard Life’s Keith Skeoch will lead the new entity as co-CEOs and Standard Life’s Gerry Grimstone will serve as chairman.