Standard Life has sold its Canadian business to a subsidiary of Manulife Financial Corporation (‘Manulife’), for £2.2bn, payable at closing.

Standard Life Investments has also entered into a new global collaboration agreement with Manulife Financial Corporation who intend to distribute Standard Life Investments’ funds into Canada, the United States and Asia.

Standard Life will reciprocate by distributing Manulife’s funds into the UK retail market.

This is expected to more than treble Standard Life Investments’ £3.3bn assets under management distributed by Manulife within three years.

“The sale and new global collaboration agreement represent the next chapter in Standard Life Investments’ continuing growth story,” said Keith Skeoch, CEO of Standard Life Investments.

“The collaboration is a natural extension of our existing strategy where we have established a range of global strategic partnerships and relationships.”

Following completion of the sale, Standard Life Investments’ Boston office will become a hub for its entire North American business, and a new dedicated office in Toronto is planned to continue serving Standard Life Investments’ institutional clients locally.

The sale comprises Standard Life’s Canadian long term savings and retirement, individual and group insurance and investment management businesses.

The transaction is expected to be completed in Q1 2015, subject to, inter alia, the approval of Standard Life Group’s shareholders and the relevant Canadian regulatory authorities.