Under the terms of the potential merger, Aberdeen shareholders would own 33.3 per cent of the merged entity and Standard Life shareholders 66.7 per cent.
According to an Aberdeen statement on the merger, the combined entity would be one of the largest active investment managers globally with £660 billion ($1.06 trillion) in funds under management.
Standard Life chairman Sir Gerry Grimstone would become chairman of the board of the combined group, with Aberdeen's chairman Simon Troughton becoming deputy chairman.
Discussions between both parties about the terms and conditions of the potential merger are ongoing, with a formal announcement subject to due diligence by both parties and approval of both boards.
"Completion of the potential merger will be subject to shareholder approvals and receipt, on satisfactory terms, of regulatory and merger control approvals as appropriate, as well as other customary conditions," said the statement.
Standard Life has until 5pm UK time 1 April 2017 to make an official offer for Aberdeen.
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