Lloyds to put £13bn wealth unit into joint venture with Schroders
Lloyds, Britain’s biggest high street lender, plans to merge its £13bn wealth-management wing into a a new joint venture with investment giant Schroders, according to a report.
Details of the arrangement – which would transform the UK’s wealth-management sector by bringing Schroders’ services closer to a more wider group than its current, affluent cliente – are nearing finalisation and an announcement is expected later this month, Sky News said.
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Both companies confirmed to City PM that talks were taking place, but said no decision had yet been made. Sky reported that the agreement would allow Lloyds to utilise Schroders’ technology and investment capabilities within its own extensive customer network.
It said that, as part of the tie-up, Schroders would take a £109bn investment-management contract from insurance and pensions provider Scottish Widows, which is owned by Lloyds, and Lloyds would acquire a 19.9 per cent stake in wealth manager Cazenove Capital.
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Sky reported the deal was said to have a total value of £500m, with the Lloyds wealth unit and Cazenove worth £350m each.
A Schroders spokesperson said: “Schroders confirms that it is in discussions with Lloyds Banking Group plc with a view to working closely together in parts of the wealth sector. Discussions are ongoing and there can be no certainty that these discussions will lead to any formal arrangement being entered into. A further announcement will be made when appropriate.”
A Lloyds Banking Group spokesperson said: “Lloyds Banking Group and Schroders are in ongoing talks with a view to the two groups working together in the wealth sector, and any further announcement will be made at the appropriate time.”