Aberdeen could become Europe’s largest listed asset manager

Martin-GilbertAberdeen Asset Management says it could become the largest listed asset manager in Europe as it enters the strategic relationship with Lloyds Banking group that will add about

£136 billion (€162.2 billion) of assets under management.

As part of a £550 million deal, which was described by Fitch as “transformational”, Aberdeen will acquire Scottish Widows Investment Partnership Group. This will also include the related private equity and infrastructure fund management businesses.

Aberdeen says the deal will add about £136 billion of assets under management and is likely to “result in Aberdeen becoming the largest listed asset management business in Europe”, with more than £336 billion under management.

According to The world's 500 largest asset managers compiled by Towers Watson, Aberdeen ranks number 25 out of the largest European asset managers extracted from the ranking, and number 65 worldwide (see table).

Aberdeen will issue 131.8 million new shares to Lloyds, equivalent to about a 9.9% stake in the group. There will also be a performance-related five-year earn-out payment of up to £100 million, depending on growth.

The asset manager, which released its unaudited half-year results today, saw its assets under management rise by 7% to £200.4 billion over the past year, even though net new business declined by £2.5 billion, and was flat in the previous year.

Martin Gilbert (pictured), chief executive of Aberdeen, says whilst there are encouraging signs of recovery in certain economies around the world, including the UK, the investment environment “is likely to remain difficult as structural imbalances remain unresolved”.

Net new business for Aberdeen declined by £2.5 billion over the past year, and was flat in 2012.

The acquisition is subject to regulatory approval.

Top ten largest asset managers in Europe

Table

Table shows top ten largest asset managers in Europe and Aberdeen. $1 = €0.74
Source: The world's 500 largest asset managers by Towers Watson

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