Aberdeen completes acquisition of Scottish Widows Investment Partnership

1st Apr 2014 09:31

Aberdeen Asset Management is set to complete the acquisition of Scottish Widows Investment Partnership (SWIP) after receiving regulatory approval.SWIP and its related private equity fund management businesses are being purchased from Lloyds Banking Group for £550m. SWIP had assets under management (AuM) of £138bn at the end of February and is expected to be materially enhancing to underlying earnings per share in the first full financial year after completion. The completion of the acquisition is expected in the next few weeks following the receipt of the regulatory approvals.It will bring Aberdeen Group's pro-forma AuM up to £324.5bn, making Aberdeen the leading European independent asset management company.The group on Tuesday reported AuM of £186.5bn at the end of February, down from £193.6bn a year earlier. The company blamed subdued emerging markets which led to net outflows.Chief Executive Martin Gilbert said: "We are pleased to have completed this important acquisition as planned and on schedule, so that we can now commence the task of integrating SWIP into the enlarged Aberdeen Asset Management Group. "We will immediately begin a structured migration of funds and platforms, whilst continuing to deliver an excellent investment performancefor both existing and new clients."Shares rose 4.46% to 407.70p at 09:42 on Tuesday.RD