Premier Asset Management has agreed a merger with Miton to create a group with £11.5bn assets under management.

An announcement from the two companies claimed the new business, to be called Premier Miton Group, would be positioned well for future growth. If it had been formed last year, the group would have become the fifth largest contributor to net UK retail sales, the two firms revealed.

Premier had reported a £100m drop in assets under management, which fell to £6.7bn for the year-ending 30 June, while Miton increased its assets under management to £4.7bn for the six months to the end of June.

Shareholders of Premier will own 66 per cent of the newly formed organisation, with Miton shareholders controlling the remaining 34 per cent. Both asset managers are listed on Aim and they have confirmed that Premier Miton Group will, too, be Aim-listed.

The merger will allow the firms to save around £7m per year in the running of operating platforms three years after its merger.

While Premier’s shares increased by just 0.44 per cent following the merger announcement, Miton’s soared 25.61 per cent.

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