LONDON (dpa-AFX) - Lloyds Banking Group plc. (LLOY.L, LYG) is to inject its 13 billion pounds wealth management arm into a new joint venture with Schroders (SDRC.L, SDR.L), Sky News reported.
Sky News reported that Lloyds Banking Group is finalising the details? of the partnership ahead of an announcement by the two companies later this month.
The deal will see Lloyds owning 50.1%? of the new JV, with Schroders owning the rest, the report said.
Taking the UK's biggest high street bank, which owns the Halifax network, deeper into wealth management services for millions of customers is a priority for Antonio Horta-Osorio, Lloyds' chief executive.
It will be part of a three-pronged tie-up between the companies, with Schroders taking on a £109bn investment management contract from Lloyds-owned Scoottish Widows.
That mandate is currently held by Standard Life Aberdeen? (SLA), but has been terminated by Lloyds in fractious circumstances after it argued that last year's £11bn merger of Aberdeen Asset Management with Standard Life had put the enlarged group in competition with it.
The third leg of the Lloyds-Schroders tie-up involves Cazenove Capital, the wealth manager for high net worth individual's.
Sources said that Lloyds would acquire a 19.9% stake in the division as part of the overall agreement, although Cazenove Capital would not be directly involved in the new wealth JV.
Both the Lloyds and Schroders boards are said to have agreed to sign off on the deal, although it has not yet been formally agreed.
It is said to have a total value of about 500 million pounds, with the Lloyds wealth unit and the 19.9% stake in Cazenove Capital valued at roughly 250 million pounds each.
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