Lloyds Banking Group has announced it has agreed to sell Scottish Widows Investment Partnership (SWIP) to Aberdeen Asset Management. Aberdeen’s shares have risen 13% following the announcement.
The £560 million deal is expected to conclude by the end of March 2014, subject to regulatory approval.
This deal only includes the group’s asset management business and does not directly impact Scottish Widows, the life, pensions and investments business.
Lloyds will receive a 9.9% stake in Aberdeen: additional deferred payments in cash may be payable, conditional on the performance of the relationship over five years.
As part of the sale agreement Lloyds and Aberdeen will enter into a long-term strategic asset management relationship whereby Aberdeen will manage assets on behalf of the Group, including Scottish Widows’ own funds.
The sale of SWIP to Aberdeen will create the largest listed asset management business in Europe, with more than £336 billion under management, and one of the most formidable players on the global stage.
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