Bank of New York Buys Insight from Lloyds

NEW YORK & LONDON (TheStreet) -- The Bank of New York Mellon(BK Quote) struck an agreement to buy the asset-management business of London-based Lloyds Banking Group(LYG Quote) for GBP 235 million. The deal to buy Insight Investment Management is expected to close in the fourth quarter of this year.

Under the deal terms, Bank of New York Mellon will pay GBP200 million in cash, with the other GBP35 million coming in equity.

Insight Investment clients include many insurance companies, pension schemes, intermediaries and corporations. According to a press release, the company is known as the third largest manager of U.K. pension funds.

Lloyds will retain and transfer about GBP42 billion from Insight Investment to its Scottish Widows Investment Partnership, bringing SWIP's total assets under management to GBP125 billion. Net of the retained assets, Insight manages some GBP80 billion in assets.

-- Reported by Sung Moss in New York