Standard Life Settles Arbitration With Lloyds Banking Group
July 24 2019 - 3:02AM
Dow Jones News
By Ian Walker
Standard Life Aberdeen PLC (SLA.LN) said Wednesday that it has
settled arbitration with Lloyds Banking Group PLC (LLOY.LN), after
the bank lost its case in March to end an asset-management deal
between the two companies.
Under the new deal, Standard Life will manage about 35 billion
pounds ($43.6 billion) of assets on behalf of Lloyds until at least
April 2022. It will also get an upfront payment of GBP140 million
as compensation for loss of profit.
Lloyds said in February 2018 that it would pull GBP100 billion
in assets from Standard Life, with the majority being shifted to
Schroders PLC (SDR.LN) to cement a new wealth-management joint
venture. BlackRock Inc. (BLK) was also due to receive a GBP30
billion portion of the assets.
The U.K. bank justified ending the agreement before its 2022
deadline by saying the merger of Standard Life and Aberdeen Asset
Management left the combined entity in competition with its
Scottish Widows business. Standard Life disputed the claim and the
two parties entered dispute resolution.
In March, Standard Life said that a tribunal had ruled that
Lloyds didn't have the right to end the agreement between the two
parties and that it would continue to manage the assets while
considering its next steps.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
July 24, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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