The acquisition is part of the insurer’s plan to diversify its revenue channels. Ignis manages fixed income, equity and real estate assets worth £67bn
Besides boosting its footprint in the UK fund management arena, the takeover will strengthen Standard Life’s investment business’ assets under management to more than £250bn.
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A statement by Standard Life was quoted by Reuters as saying, "Discussions are ongoing and there can be no certainty that any transaction will be agreed. Standard Life Plc will make further announcements if and when appropriate."
The decision to acquire Ignis comes at a time, when the company had warned that it would take "whatever action we consider necessary – including transferring parts of our operations from Scotland – in order to ensure continuity and protect the interest of our stakeholders."
If the proposed transaction materializes, it will allow Phoenix to trim down its £2bn of net debt, while enabling it to purchase life insurance businesses that are closed to new customers.
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