Aberdeen confirms talks to acquire SWIP

Aberdeen Asset Management has said it is in discussion with Lloyds Banking Group over a possible acquisition of Scottish Widows Investment Partnership.

The company said it would fund any acquisition through the issuance of Aberdeen shares to state-owned Lloyds, meaning the taxpayer could end up with a stake in the asset manager. It is also proposing to make additional deferred payments in cash, conditional on  future performance of the SWIP business, and said it is also discussing the formation of a "strategic partnership" with Lloyds. Aberdeen shares spiked on the statement, rising over 5% to 447p having previously been flat on the day. "The potential acquisition would add further scale and diversity to the company's product rang...