Lloyds to spin off Insight for £235 million to Bank of New York Mellon
12 Aug 2009
Lloyds Banking Group said on Wednesday that it would sell a major portion of its Insight Investment unit to Bank of New York Mellon for £235 million ($386 million) as part of a restructuring of its asset management operations.
The move has been expected for months from the 43 per cent state owned group. Insight, the third-party fund management unit manages assets of approximately £80 billion for pension schemes, intermediaries and other businesses.
Bank of New York Mellon, which earlier lost out to rival BlackRock in the race for rival Barclays' BGI unit has been in the forefront in the deal.
The deal which is expected to be completed by final quarter of the year will see Bank of New York Mellon pay £200 million in cash and another £35 million in equity.
Though Lloyds has not commented on the number of job losses as a result of the deal, it said there could some 'role reductions.'
Under the restructuring of its fund management units the group said its asset management units would come under the umbrella of its Scottish Windows Investment Partnership (SWIP).
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