Standard Life Aberdeen (LSE:SLA)
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3 Months : From Jul 2019 to Oct 2019
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.
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(END) Dow Jones Newswires
July 24, 2019 02:47 ET (06:47 GMT)
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