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Aberdeen to cut 150 jobs if it seals Swip deal

Aberdeen to cut 150 jobs if it seals Swip deal

Aberdeen Asset Management plans to cut a number of jobs if it successfully acquires Scottish Widows Investment Partnership (Swip), according to reports.

The Financial Times reported Aberdeen would cut 150 jobs out of a combined workforce of 2,500 between the two companies.

Aberdeen is currently locked in talks with the Lloyds-owned business over what could be a £500 million deal, which it hopes to have sealed before the year is out. It is understood Aberdeen will raise £400 million from a share issue to fund the deal and dip into its cash pile to pay off the excess.

The paper reported the cuts would be split between Aberdeen's 2,000 strong workforce and Swip, which employs 500 people.

The acquisition will propel Aberdeen, led by chief executive Martin Gilbert (pictured), above Schroders as Europe's largest listed asset management firm and diversify its business, which is heavily skewed towards emerging markets.

However, there is no guarantee Aberdeen will win the battle for Swip, with Australia's Macquarie Group widely tipped to mount its own bid.

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