Deal is expected to make Aberdeen largest in Europe

Reports claim the much-anticipated deal will create the largest listed asset management business in Europe with more than £336bn of assets under management.

A spokesman for Aberdeen said the deal was expected to create a stronger asset management partner for investors by combining Aberdeen and Swip’s strengths across fixed income, real estate, active and quantitative equities, investment solutions and alternatives.

Aberdeen declined to comment on whether it would merge any funds or alter the way it works with financial advisers.

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However a spokesman for Swip said: “Robust plans are in place to manage the sale and transfer process. In the meantime there is no change to the way Swip manages its IFA relationships and customers’ investments.

“Swip remains focused on its aim of delivering outstanding performance and excellent service”.

Jason Hollands, managing director, business development and communications, for London-based Bestinvest, said: “The news that Aberdeen has been successful in its all-share bid for Swip is something of a surprise given the reportedly higher cash offer that it has been suggested Macquarie had made.

“While a number of benefits are cited in Aberdeen’s announcement, the core of the Swip business represents the management of insurance mandates. They provide a stable source of revenue whether in bull or bear markets. Importantly these types of mandates can still be very profitable if bulked up on a ‘plug-and-play’ basis to an existing platform.”

Mr Hollands added that the deal was “another feather in the cap for Aberdeen boss Martin Gilbert”.

He said that while people have talked for years about consolidation in the asset management industry, “Mr Gilbert had clearly established himself as unrivalled king dealmaker”.

Aberdeen Asset Management year-end results to 30 September 2013

24% increase in net revenue to £1bn

39% rise in profits to £482.7m

39% increase in full-year dividend