Standard Life, Aberdeen reveal merger terms, eye 200 million stg in savings

By Simon Jessop and Carolyn Cohn

LONDON (Reuters) - Standard Life and Aberdeen set out the terms of their proposed 11 billion pound ($13.51 billion) merger on Monday, saying they expected the deal to save the combined companies up to 200 million pounds in costs.

The deal comes as asset managers which charge a higher fee to make active investment decisions face twin pressures of rising regulatory costs and lower fees, amid rising competition from low-cost index-tracking rivals.

Given the industry's long tail of small and mid-sized firms, news of a tie-up between Aberdeen and Standard Life is likely to put even more pressure on other firms to follow suit.

The groups said the new company, to be headquartered in Scotland, would take a one-off 320 million pounds cash charge to cover integration costs.

Speaking on BBC radio, Aberdeen Chief Executive Martin Gilbert said the deal would lead to job losses where the two firms had an overlap, although it was too early to say how many would go.

Aberdeen's two-biggest investors, Mitsubishi UFJ Trust and Banking and Lloyds Banking Group, have both given non-binding statements of support to vote in favour of the planned takeover, which the companies say they expect to complete in the third quarter of 2017.

($1 = 0.8141 pounds)

(Reporting by Simon Jessop; Editing by Rachel Armstrong)