Publish date:

Bank of New York Buys Insight from Lloyds

The sale of the British bank's asset management fund will total GBP 200 million in cash and GBP 35 million in equity.
Author:

NEW YORK & LONDON (

TheStreet

) -- The

Bank of New York Mellon

TST Recommends

(BK) - Get Report

struck an agreement to buy the asset-management business of London-based

Lloyds Banking Group

(LYG) - Get Report

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

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.