Business

Lloyds Bank in talks to sell Scottish Widows Investment

man looking at stock exchange board
Image caption Aberdeen recently said volatile global markets had led to a reduction in funds under management

Lloyds Banking Group is in talks to sell an asset management business to Aberdeen Asset Management.

In a statement, Aberdeen said it was discussing a possible strategic partnership with Lloyds Banking Group and a plan to buy Scottish Widows Investment Partnership (SWIP).

SWIP currently manages funds of just over £145bn.

The purchase would be funded by issuing new shares in Aberdeen to Lloyds, and a deferred cash payment deal.

The cash would be conditional on the business's performance over a period of years, Aberdeen said.

Aberdeen Asset Management said: "The potential acquisition would add further scale and diversity to the company's product range.

"There can be no certainty that the discussions will lead to any transaction or any certainty as to the terms on which any such transaction might proceed. Further statements will be made if and when appropriate."

Aberdeen Asset Management said in July that its total funds under management dropped by 1% in the three months to the end of June to £209.6bn.

It blamed volatile global markets for the fall.

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