Standard Life chief Keith Skeoch has defended the insurer’s decision to merge with rival Aberdeen Asset Management, in his first interview since the £11bn deal was agreed. The tie-up has raised concerns over likely job cuts, the management structure of the combined company, and possible asset outflows. In an exclusive interview with The Sunday Telegraph, Mr Skeoch admitted that big tie-ups come with short-term risk and issues, but insisted: “We’re not doing this for short-term reasons. “My own view is that over the next 10 to 15 years, the big winners in asset management will have scale,” he said. However, his enthusiasm is not shared by everyone internally, with sources claiming that some Standard Life fund managers have voiced fears that they were being “sold down the river to Aberdeen”, the smaller of the two. David Cumming, head of equities at Standard Life Investments, quit two days after the merger was revealed.
In the next 10-15 years, "the big winners in asset management will have scale", said Standard Life CEO Keith Skeoch, referring to the £11bn ($13bn) merger with Aberdeen Asset Management that prompted David Cumming, head of equities at Standard Life Investments, to quit and has led to rumours of job cuts and possible asset outflows. The company’s staff are "focused on the opportunity that this brings", he said.