THE IMPENDING merger between Aberdeen Asset Management and Standard Life has cleared another hurdle after the Competition and Markets Authority (CMA) announced that it would not be referring the deal for further investigation.
As is the case in any transaction that proposes bringing together two entities operating in the same sector, the CMA launched an inquiry to determine whether the deal would result in “a substantial lessening of competition” in the market.
Giving the deal the go-ahead yesterday, the CMA said it would not be referring it for a Phase 2 investigation. The CMA had until July 18 to make its decision.
Peter Lenardos, an analyst at investment bank RBC Europe, said the announcement “represents another step closer toward the expected completion date on 14 August and, as we have previously stated, we believe investors will continue to further appreciate the value, income and growth potential of the combined group as the proposed merger nears completion”.
Standard Life and Aberdeen issued a joint statement saying they “note the announcement by the CMA” and await “remaining regulatory approvals”.
Shareholders in both companies gave the merger their support at respective general meetings on Monday. A total of 96 per cent of Aberdeen’s shareholders and 99 per cent of Standard Life’s voted in favour of the combination.
It is anticipated that the deal will close on August 14 and will be followed by a three-year integration period, during which time around 800 out of 9,000 jobs are expected to be cut.
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