The merger between FTSE 100 asset manager Standard Life and its smaller rival Aberdeen Asset Management has been approved by both companies' shareholders on Monday (19 June).
The deal, due for completion by 14 August, would create the UK's largest asset manager with a combined market capitalisation of £11bn ($14bn). The recommended all-share merger will be effected by means of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006, both parties confirmed to London Stock Exchange.
The merged entity will be led by Aberdeen's boss Martin Gilbert alongside Standard Life boss Keith Skeoch, who first mooted the merger in March.
Nearly 95.8% of Aberdeen shareholders and 98.6% of Standard Life shareholders voted in favour of the merger.
Simon Troughton, chairman of Aberdeen Asset Management said both sets of shareholders recognise the strategic and financial rationale of the transaction which will create the UK's largest active asset manager and one of the top 25 globally.
"The two businesses' investment capabilities and distribution channels are highly complementary and by combining them we are well positioned to compete in an evolving global market environment.
"The new company will have a robust balance sheet and diverse revenue streams, by asset class and distribution channel. This will facilitate investment in the business to support long-term growth and shareholder returns."
Standard Life chairman Sir Gerry Grimstone said: "Our merger with Aberdeen will be one of the most significant events in our near 200-year history, creating a well-diversified world-class investment company.
"There are still some approvals to be granted before the merger can complete and I know the teams in both companies are working through these diligently."