CMA inquiry into £11bn Standard Life-Aberdeen merger

Britain's competition watchdog has launched an inquiry into the £11bn merger between Standard Life (LSE: SL.L - news) and Aberdeen Asset Management (Frankfurt: 899502 - news) .

It will look at whether the tie-up "may be expected to result in a substantial lessening of competition".

The Competition and Markets Authority (CMA) said it was seeking feedback and would decide by 18 July whether to launch a more in-depth investigation.

The merger between the two Scottish-based fund managers was agreed in March and if given the green light would create a global powerhouse overseeing £660bn of assets.

It is targeting cost savings of £200m a year, with around 800 jobs expected to be lost over a three-year period from the current global workforce of 9,000 staff.

Bosses have said they expect "natural turnover" to account for some of the reductions, while other steps will be taken to minimise compulsory redundancies.

Under the terms of the deal, Aberdeen shareholders would own 33.3% and Standard Life shareholders would own 66.7% of the combined group.

The newly-merged company would be renamed Standard Life Aberdeen plc, with Standard Life chairman Sir Gerry Grimstone continuing in the role and Aberdeen's chairman Simon Troughton becoming deputy chairman.

Keith Skeoch, the Standard Life chief executive, and Aberdeen boss Martin Gilbert will become co-chief executives of the new firm.

Standard Life said: "Standard Life today filed an application with the CMA in respect of the proposed merger with Aberdeen Asset Management.

"This has triggered the CMA's standard phase 1 review of this application. This is one of a number of regulatory approvals being sought as part of the merger process."