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(Add Lloyds confirmation, background)
October 7 (Reuters) – Asset Management Companies Schroders Plc and Lloyds Banking Group are in discussion to collaborate in the wealth management sector, the two UK companies said.
A spokeswoman for Schroders revealed the decision after Sky News announced that Lloyds would merge its $ 13 billion ($ 17 billion) wealth management business into a new joint venture with Schroders.
"Schroders confirms that discussions are underway with Lloyds Banking Group plc to cooperate closely within sectors of the wealth sector," she said in an email to Reuters, adding that it is not possible There was "no certainty that these discussions would lead to an official dialogue." Arrangement in progress.
The Lloyds banking group issued a similar statement, saying any new announcement "will be made in a timely manner".
According to Sky News, Lloyds would own 50.1% of the new joint venture with Schroders, Sky said, citing sources. bit.ly/2E1GO2d
Wealth management contributed EUR 273.3 million to Schroders' net result in 2017 and is an area of focus for future growth.
Sky News said the new joint venture would be part of a three-pronged agreement between the two companies.
This would imply that Schroders subscribes to a GBP 109 billion portfolio management contract with Scottish Widows, Lloyds' property, which is in dispute with Standard Life Aberdeen (SLA), which previously managed the money.
The mandate was withdrawn from SLA after Lloyds declared that the merger of Standard Life insurers and Aberdeen Asset Management in 2017 made the enlarged company a significant competitor.
The dispute remains in arbitration.
The third stage of the Lloyds-Schroders deal involves wealth manager Cazenove Capital, Sky reported.
$ 1 = 0.7618 pounds
Report by Gaurika Juneja, edited by William Maclean
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