'Asset managers seeking talent will be monitoring Aberdeen/Standard Life deal closely'

Merger creates firm with AUM of £660bn

Wealth managers and analysts have identified cost synergies in the surprise mega-merger between Standard Life and Aberdeen Asset Management, but have raised concerns over staff retention and the need for product consolidation.

Last week, the groups confirmed plans for an all-share merger which would create a global entity with some £660bn in assets under management and 9,000 staff, to be run by co-CEOs Keith Skeoch (Standard Life) and Martin Gilbert (Aberdeen). Implications One of the key advantages to the deal, which has been hailed as "complementary" by analysts, is the reduction in costs. Standard Life expects to see around £200m in pre-tax cost synergies per annum after three years including: • Efficiencies from simplifying and harmonising platforms;  • Eliminating overlap in distribution; rational...