Aberdeen Asset Management acquires Lloyds' investment unit

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Aberdeen Asset Management acquires Lloyds' investment unit

Lloyds Banking Group has closed a deal with Aberdeen Asset Management that will see the partly government-owned bank sell Scottish Widows' investment arm for up to £660 million (€787.7 million).

Scottish Widows Investment Partnership (SWIP), which includes private equity and infrastructure funds, will transfer to Aberdeen Asset Management in a deal that is being paid for with £560 million of stock that represents 9.9 % of Aberdeen's share capital. In addition, Lloyds will receive a £100 million earn-out in five years dependent on future profits.

The sale does not include Scottish Widows, the group's life, pensions and investment business, which Lloyds said was "core" to the group.

The deal, which brings Aberdeen's total assets under management to £340 billion, creates the biggest listed fund manager in Europe, ahead of Schroders.

The acquired business will add around 136 billion pounds of assets under management with annualized revenues of 234 million pounds to the group.

Lloyds had to be bailed out by the British taxpayer at the height of the banking crisis in 2008 but has recently shown signs that it is healing. The government recently sold some of its stake in the bank.

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