Fund manager Aberdeen Asset Management announced the proposed acquisition of Scottish Widows Investment Partnership (SWIP) from Lloyds Banking Group, with long-term implications for its Australian arm.
The deal is subject to regulatory approval.
Aberdeen is paying mostly shares for the deal, with a 9.9 per cent shareholding for SWIP in Aberdeen, worth around £550 million ($956 million).
With the addition of SWIP’s approximately §159 billion (A$228 billion) of assets under management, the acquisition will make Aberdeen the largest listed independent asset management business in Europe, with §393 billion under management (A$564 billion), Aberdeen said in a statement.
Aberdeen’s Australian managing director Brett Jollie said the deal would not impact the Australian arm of the company in the short term but will “enhance our capabilities and improve diversification in the longer term”.
He said it was a “positive deal” for Aberdeen’s global business.
Chief executive of Aberdeen Martin Gilbert said the acquisition would strengthen the company’s investment capabilities and add new distribution channels.
“The acquisition of SWIP adds scale to our business across a range of asset classes; and it also introduces a strategic relationship with Lloyds Banking Group,” Gilbert said.
“We are confident that this transaction will deliver considerable additional value to our expanded client base and this will therefore benefit our shareholders,” he said.