Lloyds Banking Group is reportedly plotting a spree of acquisitions for Scottish Widows.
Sky News reports the bank has held a beauty parade of investment banks as it plans to embark on a spate of purchases for the provider.
Lloyds has reportedly engaged management consultant McKinsey to assist in identifying assets for acquisition. It is said to be targeting corporate pensions and bulk annuities acquisitions.
A Lloyds spokesman told Sky News: “We are looking at how we continue to focus on growing our insurance business where we believe we have competitive advantage through our sector expertise and scale. We have no plans to review our Insurance business more broadly or to consider divestment.”
McKinsey did not respond to requests for comment.
It comes as the Government continues to sell off its holdings in Lloyds.
In its most recent update, the Treasury said the sale of its holdings had so far raised more than £16bn. However, further sales of the Government’s remaining nine per cent holding are on hold, having been suspended in January in the face of market volatility.
In the recent Budget, the government committed to returning its stake to the private sector in 2016/17.