Alliance Trust and Witan Investment have announced their merger, creating a massive £5bn investment trust named Alliance Witan PLC. This merger follows the retirement announcement of Witan CEO Andrew Bell, who served for 14 years.

Andrew Ross, Witan’s chairman, discussed the comprehensive review process that led to the merger, noting that the board considered several impressive proposals but ultimately chose Alliance Trust for its synergistic benefits. He highlighted the benefits of merging, such as reduced fees and increased liquidity, while maintaining their multi-manager investment strategy.

The merger will proceed through a scheme of reconstruction under section 110 of the Insolvency Act 1986, facilitating the integration of Witan into Alliance Trust. This will result in Witan shareholders receiving new shares in Alliance Witan.

Dean Buckley, chair of Alliance Trust, expressed enthusiasm about the merger, emphasizing its strategic importance in combining two pioneering multi-manager investment propositions in the UK. He noted that the merger would enhance their market position by leveraging the sophisticated investment processes of Willis Towers Watson and providing access to top global stock pickers.

This merger is a significant event in the investment trust sector, signifying a major evolution in investment trust structures and showcasing a robust strategy for future financial industry developments.