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Schroders says it's talking to Lloyds about working closely in wealth sector

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By Reuters
Schroders says it's talking to Lloyds about working closely in wealth sector
People walk past a branch of Lloyds Bank on Oxford Street in London, Britain July 28, 2016. REUTERS/Peter Nicholls/File Photo   -   Copyright  Peter Nicholls(Reuters)

(Reuters) – Asset manager Schroders Plc <SDR.L> said on Sunday it is in discussions with Britain’s Lloyds Banking Group <LLOY.L> to work closely in the wealth sector.

A Schroders spokesperson disclosed the move after Sky news reported that Lloyds is to merge its 13 billion pounds ($17.06 billion) wealth management arm into a new joint venture with Schroders.

“Schroders confirms that it is in discussions with Lloyds Banking Group plc with a view to working closely together in parts of the wealth sector,” the spokesperson said in an email to Reuters.

“Discussions are ongoing and there can be no certainty that these discussions will lead to any formal arrangement being entered into. A further announcement will be made when appropriate.”

Sky News reported that the deal would see Lloyds owning 50.1 percent‎ of the new joint venture with Schroders owning the rest, Sky said, citing sources.

Sky News said the new joint venture will be part of a three-pronged tie-up between the companies, with Schroders taking on a 109 billion pounds investment management contract from Lloyds-owned Scottish Widows.

The third leg of the Lloyds-Schroders deal involves wealth manager Cazenove Capital, Sky reported.

Lloyds Banking Group did not immediately respond to requests for comment.

($1 = 0.7618 pounds)

(Reporting by Gaurika Juneja, Editing by William Maclean)