Aberdeen Asset Management acquires Swip

Aberdeen Asset Management has confirmed it has bought Scottish Widows investment arm Scottish Widows Investment Partnership in a deal which sees Lloyds Banking Group take just under a 10 per cent stake in Aberdeen.

In announcements made early today on the London Stock Exchange, Lloyds Banking Group and Aberdeen Asset Management say a £550m deal to acquire Swip has been reached.

The deal also includes deferred payments in cash of up to £100m.

The share deal requires Lloyds to keep 100 per cent of its stake in Aberdeen for a minimum of 12 months.

As part of the deal Aberdeen will form a strategic partnership with Lloyds, with SWIP’s management and employees transferring to Aberdeen upon completion of the acquisition.

The asset manager has seen off opposition from rival bidder Macquarie Group who were thought to have put in a $800m (£500m) all-cash offer for Swip in early November.

Aberdeen first announced it was in talks with Lloyds over a possible bid for the asset management business of Scottish Widows back in October.

Following news of the initial talks between both groups, the FT reported at the start of November that Aberdeen could look to cut around 6 per cent of a Aberdeen and Swip’s combined workforce of 2,500.

Aberdeen Asset Management chief executive Martin Gilbert says:“This transaction is significant for the long-term prospects of Aberdeen in a number of ways. It strengthens our investment capabilities and adds new distribution channels; the acquisition Swip adds scale to our business across a range of asset classes; and it also introduces a strategic relationship with Lloyds Banking Group.

”We are confident that this transaction will deliver considerable additional value to our expanded client base and this will therefore benefit our shareholders.  I am delighted to welcome Lloyds as a major shareholder in the Aberdeen group and we look forward to working with them to deliver value through this new strategic relationship.”