Aberdeen/Swip deal granted regulatory approval

Aberdeen Asset Management has completed its deal to buy Scottish Widows Investment Partnership (Swip).

The deal has finally received regulatory approval, having been agreed between Aberdeen and Swip’s parent company Lloyds Banking Group last year.

The deal is expected to be completed after the close of business on March 31 this year, with Aberdeen set to update the market to confirm the merger on April 1.

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Martin Gilbert, cheif executive of Aberdeen, said the “migration process” to integrate the two firms “will begin very shortly after completion”.

Aberdeen is likely to become the biggest fund management company in Europe by assets, reaching almost £350bn as a result of the deal.

The deal was orginally announced in November 2013, when Aberdeen said it would be creating 131.8m new shares to be given to Lloyds, giving the bank a 9.9 per cent stake in Aberdeen.

The price for the acquisition was therefore £550m based on a share price for Aberdeen of 420p, though its shares have since fallen and the price is currently 375p.

The deal also included a potential extra £100m payable by Aberdeen to Lloyds based on a series of five-year performance-dependent payments.