October 23, 2018 / 1:28 PM / 21 days ago

BRIEF-Schroders & Lloyds Announce Strategic Partnership

Oct 23 (Reuters) - Lloyds Banking Group PLC:

* SCHRODERS & LLOYDS ANNOUNCE STRATEGIC PARTNERSHIP

* SCHRODERS AND LLOYDS ANNOUNCE WEALTH MANAGEMENT STRATEGIC PARTNERSHIP AND AGREEMENT TO MANAGE £80BN OF SCOTTISH WIDOWS AND LLOYDS ASSETS

* CO, LLOYDS BANKING GROUP ANNOUNCE THAT THEY ARE ENTERING STRATEGIC PARTNERSHIP TO CREATE WEALTH MANAGEMENT PROPOSITION

* LLOYDS AND SCHRODERS WILL ESTABLISH A NEW FINANCIAL PLANNING JOINT VENTURE COMPANY (‘JV’) FOR AFFLUENT CUSTOMERS

* LLOYDS WILL OWN 50.1% OF SHARE CAPITAL AND SCHRODERS REMAINING 49.9% IN NEW JV

* LLOYDS WILL TRANSFER APPROXIMATELY £13 BILLION OF ASSETS AND ASSOCIATED ADVISERS FROM ITS EXISTING WEALTH MANAGEMENT BUSINESS TO THE JV

* JV WITH LLOYDS AIMS TO COMMENCE ACTIVITIES BY END OF H1 2019 & TO BE LED BY A MANAGEMENT TEAM COMPRISING REPRESENTATIVES FROM BOTH PARTNERS

* ANTONIO LORENZO, CHIEF EXECUTIVE OF SCOTTISH WIDOWS AND GROUP DIRECTOR OF INSURANCE & WEALTH WILL BE CHAIRMAN OF JV

* JAMES RAINBOW, SCHRODERS’ CO-HEAD OF UK INTERMEDIARY, WILL BE CHIEF EXECUTIVE OF JV

* LLOYDS WILL RECEIVE UP TO A 19.9% FINANCIAL INVESTMENT IN HOLDING COMPANY OF SCHRODERS’ UK WEALTH MANAGEMENT BUSINESS

* LLOYDS TO TRANSFER ABOUT £400 MILLION OF EXISTING PRIVATE CLIENT ASSETS UNDER MANAGEMENT TO SCHRODERS’ UK WEALTH MANAGEMENT BUSINESS

* LLOYDS REMAINS CONFIDENT IN RIGHTS TO TERMINATE CURRENT ASSET MANAGEMENT AGREEMENTS; EXPECTS ARBITRATION PROCESS TO CONCLUDE EARLY NEXT YR

* CO, LLOYDS AGREED TO WORK TOGETHER, POTENTIALLY DEVELOP INVESTMENT PROPOSITIONS & ADVICE FOR LLOYDS’ RETAIL CUSTOMERS

* GLEACHER SHACKLOCK LLP ACTED AS FINANCIAL ADVISER TO SCHRODERS IN RELATION TO TRANSACTION

* TRANSACTION EXPECTED TO ENHANCE EARNINGS FOR SHAREHOLDERS OF CO IN FIRST FULL FY AFTER DEAL COMPLETION WHEN ONE-OFF COSTS ARE EXCLUDED Source text for Eikon: Further company coverage:

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