Aberdeen Asset Management has acquired the majority of Credit Suisse's fund management business in an all-share deal worth up to £250m.
Credit Suisse will receive up to 24.97% of Aberdeen's enlarged issued ordinary share capital, becoming the largest stockholder in the British fund house.
The deal will see Aberdeen grow its assts under management by £40bn to about £150bn.
Credit Suisse will accept the full 240m ordinary Aberdeen shares should it meet revenue targets by the expected transaction closing date of 30 June.
Aberdeen is acquiring the traditional long-only asset management business, which will expand its presence in Europe, Asia and Australia.
It is the second big deal for the Martin Gilbert-led firm, following its takeover of £46bn Deutsche Bank assets in 2005. Schroders was believed to have tabled an alternative cash offer, but walked away after Credit Suisse wanted a deal done before the end of the year.
Credit Suisse has agreed it will not acquire 25% or more of the Aberdeen's issued voting share capital for a minimum of three years from the closing date.
"This transaction fits perfectly within our strategy, a key part of which has been to make earnings enhancing acquisitions which give the business critical mass in our core competencies, complementing our organic growth," Gilbert says.
"Given our proven track record of integrating businesses, we are well placed to ensure a smooth transition of the Credit Suisse assets to Aberdeen."
Aberdeen's former largest shareholder, the hedge fund giant Toscafund, welcomed the deal.
"Toscafund has already confirmed its support for this transformational acquisition, which has been made possible by the excellent operating platform offered by Aberdeen," its chief executive Martin Hughes says.
"Toscafund believes that the transaction is of clear benefit to the clients and shareholders of Aberdeen Asset Management and Credit Suisse."
Aberdeen's share price climbed 9.59% to 114.25p on the announcement.IFAonline
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