Aberdeen AM is on track to buy Scottish Widows Investment Partnership for £500m. The deal, described as ‘transformational’ by Fitch Ratings, would result in the company becoming Europe’s biggest publicly traded investment group. Scrhoders is currently the biggest listed investment group, with £255bn under mangement. This deal would leave Aberdeen with £350bn under management.
Aberdeen is the frontrunner to buy SWIP from Lloyds Banking Group. Australia’s largest investment bank Macquarie Group, is also in the running. The deal for Lloyds would help free up much needed capital, and boost the bank’s financial position at a time when it is needed.
Aberdeen is FTSE 100 listed, and would have to raise an estimate £400m from shares, and £100m in cash to complete the deal, this would be deferred and conditional on the performance of the partnership over a period of years.
If it takes place, it would be the second largest acquisition for Aberdeen, and a landmark achievement for Chief executive Martin Gilbert.
SOURCE: funds europe/financial times 28/10/13