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LONDON (Alliance News) - Standard Life Aberdeen PLC's asset management arm, Aberdeen Standard Investments, confirmed Wednesday it is acquiring a 50% stake in CYBG PLC's Virgin Money's investment arm for GBP40 million.
CYBG, a Glasgow-headquartered lender which operates the Clydesdale Bank and Yorkshire Bank brands and recently bought rival Virgin Money, said the joint venture with Aberdeen Standard Investments will "build on" Virgin Money's GBP3.7 billion funds under management.
The deal for a stake in Virgin Money Unit Trust Managers Ltd will see Aberdeen Standard services being offered to all CYBG customers, not just Virgin Money account holders.
Aberdeen Standard Investments Co-Chief Executive Martin Gilbert said: "The signing of the sale and purchase agreement that encompasses Virgin Money, Clydesdale Bank and Yorkshire Bank customers is an important milestone in progressing our joint venture with Virgin Money."
"The partnership offers a fantastic opportunity to develop a business that combines the best talents of Virgin Money and ASI. Most importantly, the joint venture will offer customers across the enlarged CYBG group, beyond Virgin Money’s existing customer base with investment solutions to help them achieve their long-term financial goals."
Subject to regulatory approval, the deal expected to be completed in the second quarter.
At June 30, Aberdeen Standard funds under management stood at GBP557.1 billion.
Shares in Standard Life Aberdeen were up 1.2% Tuesday at 266.05 pence each. CYBG was lagging at the bottom of the FTSE 250 in midday trading in London, down 3.0% at 184.50p each.
