Aberdeen Asset Management is expected to unveil the acquisition of Credit Suisse's UK asset management division for £200-£250 million this morning in a deal that will make theScottish group into Britain's largest independent fund manager.

Credit Suisse will become Aberdeen's largest shareholder as part of the all-share deal. It is understood that it will take a stake of between 20 and 25 per cent in Aberdeen, and create a fund manager with around £170 billion worth of assets under management. Credit Suisse put the business up for sale earlier this year. Job cuts at the division are likely if Aberdeen takes over.

This could help turn Aberdeen into a global player with operations in the US, Asia and across Europe.

The two companies are expected to make an official announcement this morning. If a deal is not struck soon, Credit Suisse may open up the auction for its UK assets again.

A rival cash offer is understood to have been made by Schroders, but it is thought to have pulled out as Credit Suisse wanted to complete the sale before the end of the year.

Securing the Credit Suisse asset management business would be the latest in a series of big deals for Aberdeen, which beat BNP Paribas, the French bank, in the auction of £46 billion of assets controlled by Deutsche Bank in July 2005.

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