Based on real estate AUM in 2015, the combined company would have €50.3 bn of property assets, putting it behind AXA Investment Managers – Real Assets (€54.2 bn) and the number one player Swiss Life Asset Managers (€62.2 bn). Aviva Investors, which ranked third in 2015 with real estate AUM of €43.5 bn, would move to fourth place.

Aberdeen AM and Standard Life confirmed over the weekend that they are holding talks about a possible merger, which would create one of the UK and Europe’s largest fund managers, overseeing assets worth £660 bn (€763 bn).

Initial reports suggested that Standard Life was preparing a £3.8 bn (€4.39 bn) takeover of rival Aberdeen, but the two companies said on Monday that they were now looking at an all-share merger.

Joint CEOs

According to Standard Life, its shareholders will own two-thirds of the combined group, with Aberdeen shareholders owning a third. That would reflect Aberdeen's £3.7 bn market capitalisation and Standard Life's £7.5 bn value.

The new company will incorporate both businesses' names and Martin Gilbert from Aberdeen and Keith Skeoch from Standard Life will both continue as joint chief executives.

'The combination of our businesses will create a formidable player in the active asset management industry globally,' Skeoch told the media. 'We strongly believe that we can build on the strength of the existing Standard Life business by combining with Aberdeen to create one of the largest active investment managers in the world and deliver significant value for all of our stakeholders.'

The company is likely to be headquartered in Scotland and will comprise equal numbers of Standard Life and Aberdeen directors.

'This merger brings financial strength, diversity of customer base and global reach to ensure that the enlarged business can compete effectively on the global stage,' concluded Gilbert.

The companies said the deal is subject to a number of conditions, including shareholder approvals.