LONDON, March 4 (Reuters) - Scottish fund manager Aberdeen Asset Management is exploring possible options for a tie-up with insurer Standard Life, Sky News reported on Saturday, in a deal which could total 11 billion pounds ($13.52 billion).
The deal could involve a full merger or a tie-up between Aberdeen and Standard Life Investments, the insurer's asset management arm, according to unnamed sources cited by Sky.
Standard Life declined to comment, while Aberdeen could not be immediately reached for comment.
A competitive environment and the need to cost-cuts is fuelling merger activity in the fund management sector, with London-based asset manager Henderson Group agreeing to buy U.S. rival Janus Capital Group Inc last year in an all-share $6 billion deal.
Both Aberdeen and Standard Life Investments' flagship GARS multi-asset funds saw outflows last quarter, and Standard Life Chief Executive Keith Skeoch said the firm was "continually scanning the horizon to see what's available" when it came to M&A.
Standard Life has a market cap of 7.5 billion pounds, with Aberdeen roughly half the size. ($1 = 0.8134 pounds) (Reporting by Alistair Smout; Editing by Alexander Smith)