Lloyds terminates £109bn contract with Standard Life Aberdeen
Lloyds Bank and its subsidiary, Scottish Widows, have cut a contract with Standard Life Aberdeen worth £109bn (US$153bn).
The investment firm’s shares have significantly dropped by as much as 9% since the announcement of losing its biggest client.
Lloyds Bank reportedly made the decision to drop the asset management agreement due to competition issues.
“We are disappointed by this decision in context of strong performance and good service we have delivered for LBG, Scottish Widows and their customers,” Reuters reported Keith Skeoch and Martin Gilbert, CEOs of Standard Life Aberdeen, stating.
The firms have previously been discussing partnership options following the merger of Aberdeen and Standard Life, which Lloyds regarded as a competition problem.
“Given the merger of Standard Life and Aberdeen has resulted in our assets being managed by a material competitor, it is now appropriate to review our long-term asset management arrangements to ensure they remain up-to-date and that customers continue to receive good service and investment performance,” reported Antonio Lorenzo, CEO of Scottish Widows, claims the Financial Times.
“Therefore, we will begin an in-depth assessment of the market to identify a long-term strategic partner, or partners, to manage the current £109bn of assets.”
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