In battlelines have been drawn between one of the largest managers of assets in the UK and one of the largest banks after standard life Aberdeen to lloyds Bank for trying to get the contract for the sum of £109 billion.
Standard life Aberdeen, the company created Internet – £11 billion last summer, said he “disagrees” with the assertion of Lloyd’s that the two firms were in “Material competition” in the UK after the merger.
In a surprise move, today, Standard life said that Lloyds Banking Group and its subsidiary Scottish widows have no right to pull their business. The contract brings in about $ 129 millions in annual revenue for standard life Aberdeen, representing last year, about 4.4 PC its Pro forma revenue, he said.
Lloyd replied that he was “disappointed comments standard life Aberdeen, especially in light of our position as a major customer.”
“Standard life and Aberdeen constitute a clear and material competitor of the Scottish widows and lloyds banking group in the UK and to say otherwise is not credible,” the Bank added.
Aberdeen began managing assets for Lloyds’ Scottish widows in 2014, when he bought the Scottish investment partnership of life from the Bank. However, Lloyd said that he was entitled to the ax if Aberdeen has joined forces with a competitor, as it was with the standard of living in August last year.
Earlier this year, lloyds said it will be the termination of the contract with the standard life of the city.
At that time, the Executive Director of Scottish widows, Antonio Lorenzo, said that the deal means that its assets were now “driven material competitor”, adding that the group has begun to evaluate the market to find an alternative.
The bosses of standard life Aberdeen’s Martin Gilbert and Keith Skeoch
Lloyd said today he was “confident” in its legal position and was “surprised at the course of action undertaken by standard life Aberdeen”.
The Bank noted that “in any case, the management of these funds would have ended formally in accordance with the terms of the contract in March 2022”.
The two companies interact with each other within the dispute resolution process under the contract and meetings are usually held between senior executives of each of the firms over the next few weeks.
In February, standard life, Aberdeen said it was selling most of its insurance business to a small rival Phoenix group for $ 3.2 billion
At the time, standard life Aberdeen co-chief Martin Gilbert said: “We did this operation to address competition issues [lloyds].”
“We have a very good relationship with lloyds, it was more sadness that we have reached where we were.”