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BNY Mellon to acquire Insight in £235m deal

BNY Mellon is to acquire Insight Investments from Lloyds Banking Group for £235m.

The deal is expected to conclude in the final quarter of 2009 and will consist of a £200m cash consideration and a £35m equity consideration.

The sale will include Insight’s external fund management operation which manages assets of approximately £80bn for pension schemes, third party distributors, intermediaries and other corporates.

BNY Mellon will have over $1tn in assets under management at the conclusion of the sale.

Launched in 2002, Insight Investment specialises in liability driven investment solutions, active fixed income and alternatives.

The news comes as Lloyds announces the conclusion of the strategic review of its asset management business.

Lloyds plans to transfer the investment management of the funds sourced from the Group’s Halifax and Bank of Scotland bancassurance businesses, the Bank of Scotland wealth management operation and the Clerical Medical intermediary franchise from Insight Investment to Scottish Widows Investment Partnership (SWIP), which will become the centre of its asset management business.

The transfer of assets from Insight will mean Swip will have approximately £125bn of assets under management.

Lloyds Banking Group says it expects job losses following the deal. The group is currently consulting with the unions about the sale and the transfer.

Lloyds Banking Group wealth and international director Jo Dawson says: “‘As Lloyds Banking Group continues to develop and grow, both in the UK and internationally, it was essential that we undertook a thorough and robust review of our asset management businesses and future plans. Both SWIP and Insight are strong and well established asset managers but we believe Insight is better able to focus on developing its specialist external franchise outside the Group.”

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