RBC could acquire Scottish Widows Investment Partnership

Published:  12 Jun at 9 AM The Royal Bank of Canada is rumoured to be interested in bidding for Scottish Widows’ asset management arm. Scottish Widows Investment Partnership is currently controlled by Lloyds Banking Group, but a number of sources with knowledge of the situation believe a deal would make sense.

RBC subsidiary RBC Wealth Management, which has C$560 billion under management, acquired BlueBay, the UK fixed-income specialist in October 2010 in a deal worth $1.51 billion. The following year RBC Wealth Management group head, George Lewis, suggested that he was interested in acquiring a UK equities manager.

Lloyds Banking Group has been taking advice from Deutsche Bank on its asset management business since 2009. Lloyds is likely to want to sell Swip ahead of the possible sale of the 39 per cent of the bank the UK government currently holds in order to make its financial position stronger.

Other potential bidders for Swip include Threadneedle Investments owner Ameriprise Financial, although nothing has yet been confirmed. Both L&G and Aberdeen Asset Management have confirmed that they will not be putting in bids for Swip.

Last month Lloyds sold two St James’s Place stakes. The deals for the wealth advisory group shares raised £943 million.