Standard Life is in talks to buy fund manager Ignis Asset Management, both firms have confirmed.

Standard Life Investments is in talks to buy fund manager Ignis Asset Management, both firms have confirmed.

Discussions between both companies are ongoing but there is no certainty the transaction will be completed, the firms said in separately released statements.

The deal potentially makes Standard Life one of the biggest UK investment managers, taking it above M&G and Aviva Investors with assets of over £250 million ($412.2 million).

“Standard Life notes recent press speculation and confirms that it is in exclusive and advanced discussions with Phoenix Group Holdings regarding a potential acquisition of Ignis Asset Management Limited. Discussions are ongoing and there can be no certainty that any transaction will be agreed. Standard Life will make further announcements if and when appropriate,” Standard Life said in a statement.

Ignis has £67 billion in assets under management and is owned by life assurance company Phoenix Group.

Troubled insurance group Phoenix has been looking to offload companies after coming under pressure from shareholders to reduce its £2 billion debt. Phoenix said it will update the market on the sale at the time of its annual results on 26 March.

The deal follows a number of similar mergers and acquisitions in the sector, including the acquisition of Aberdeen Asset Management by Scottish Widows for £660 million last year, and Bank of Montreal’s purchase of London-listed F&C Asset Management for £700 million.