Regulators clear Scottish Widows Investment Partnership sale

The deal will make Aberdeen Asset Management the biggest listed fund manager in Europe

Regulators have cleared Aberdeen Asset Management's proposed £660m acquisition of Scottish Widows Investment Partnership (SWIP) from Lloyds Banking Group.

The deal is now expected to complete on 31 March, following consent from the Financial Conduct Authority.

The sale of SWIP does not include the banking group's life, pensions and investment business, Scottish Widows.

Aberdeen is paying mostly shares for the deal.

It will hand Lloyds a 9.9% stake, worth about £560m, and manage assets on behalf of Lloyds as part of the deal.

Aberdeen will also pay Lloyds up to £100m in five years' time, depending on the performance of these assets.

Aberdeen chief executive Martin Gilbert said: "We will continue to work closely with SWIP and Lloyds Banking Group to ensure a smooth completion process.

"The way we have already worked together to develop a structured integration plan is very encouraging and means that the migration process will begin very shortly after completion.

"This co-operation confirms my belief that the combination of the two businesses and our strategic relationship with Lloyds will be of great long-term benefit to our shareholders and clients, whom I would like to thank for their continued support throughout this process."

Aberdeen will add £136bn in assets to its books in the deal, making it the biggest listed fund manager in Europe with assets under management of about £340bn.