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Aberdeen Asset Management is to take on Credit Suisse's fund management arm in a deal worth £250 million

The all-share deal will see Credit Suisse take a 24.97 per cent stake in Aberdeen, which will become the UK's largest listed fund manager.

Aberdeen – after the deal – will have around £150 billion of assets under management, but it hopes it will be able to extend its position and it will be the only long-only traditional asset manager with a leading presence in Europe, Asia and Australasia.

Martin Gilbert, chief executive of Aberdeen, said: “The acquisition confirms Aberdeen's position as a leading global asset manager and provides us with greater access to the distribution network of Credit Suisse and its private banking division, one of the world's largest wealth managers. 

“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.”

Martin Hughes, chief executive of Toscafund, Aberdeen's largest shareholder, said: “Toscafund believes that the transaction is of clear benefit to the clients and shareholders of Aberdeen Asset Management and Credit Suisse.”

Integration of the two firms is expected to cost £25 million.

Credit Suisse has had its fund management arm up for sale since the summer, as it has tried to shore up its balance in light of the credit crisis.

At 9:32 GMT, the Aberdeen share prices was up 10.79 per cent to 115.50p.