As part of restructuring its asset management units, Lloyds – the UK-based banking major, has decided to sell its Insight Investment unit to Bank of New York Mellon for GBP200 million in cash and GBP35 million in equity – reported Reuters.
The bank, which had witnessed its toxic assets rise five times to GBP13.4 billion in the first half of 2009 from GBP2.5 billion during the same period a year ago, is also considering some structural changes to other businesses such as pension schemes, intermediaries and other businesses.
Lloyds, 43% owned by the state, said it would bring together its asset management businesses like Halifax and Bank of Scotland bancassurance units, the Bank of Scotland wealth management operation and the Clerical Medical intermediary franchise from Insight under its Scottish Widows Investment Partnership (SWIP).
Jo Dawson, director of Wealth and International at Lloyds, said: 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, reported the newspaper.
