UK-listed Aberdeen Asset Management has said it will acquire a business based on a small island off China's East coast.

Aberdeen Asset Management has agreed to acquire Value Partners Concord Asset Management, a Taiwan-based business, for an undisclosed sum.

Value Partners manages one onshore fund, the Value Partners Concord Greater China Value Fund, which as of 31 May 2017 had net asset value of TWD125 million ($4.1 million).

Aberdeen Asset Management will require regulatory approval to merge Value Partners with its existing business in Taiwan, Aberdeen International Securities Investment Consulting Company (AISICC).

AISICC has been active in Taiwan since 2007, and its licence allows it to register Aberdeen's Luxembourg-domiciled funds for distribution onshore. 

The firm currently has 26 funds with combined assets under management of $1.5 billion, the majority of which are invested in equities. 

The agreement to acquire the new business comes just one week after Aberdeen Asset Management was given the green light from the UK's competition watchdog to merge with UK-listed firm Standard Life, to create a global investment giant with around $660 billion of AuM.

Standard Life Investments, the investment subsidiary, has no direct presence in Taiwan and, therefore, Aberdeen Asset Management's latest acquisition is not affected. 

“We see significant potential in Taiwan as investor needs mature,” said Hugh Young, managing director of Aberdeen Asset Management's Asia-Pacific business. “After a decade with a local presence we know the market well. The authorities have a very progressive view on developing the investment industry.”