Lloyds TSB Groups announced agreement today to acquire HBOS PLC will create one of the largest active asset managers in the U.K., with combined assets under management of £202 billion ($367 billion), according to data as of June 30.
Scottish Widows Investment Partnership, a Lloyds subsidiary, had £90 billion in assets. The fund manager is likely to be merged with Insight Investment Management, a division of HBOS with £112 billion. Details of how the two firms might be integrated if the merger is finalized were not available at press time.
Its far too early to talk about the shape of the (combined) group and the future of the different parts of the business, said Emile Abu-Shakra, spokesman for Lloyds.
Long-only equity strategies dominate SWIPs business, making up about half of total assets under management. Both firms overlap in the fixed-income sector, while Insight also has made inroads in managing liability-led investing strategies for pension funds.
Lloyds acquisition of HBOS was partly brokered by the U.K. government to save HBOS as shares in the bank plummeted by about 50% in a week. The deal valued HBOS at £12.2 billion based on Lloyds closing share price on Sept. 17 of 279.75 pence, according to a Lloyds news release.