Lloyds to Acquire Schroders' Stake in SPW for £1.4 Billion
Lloyds Banking Group is set to expand its wealth acquisition services with a significant acquisition. The bank is poised to buy out Schroders' 49.9% stake in Schroders Personal Wealth (SPW), a move initiated by Peter Hargreaves. This deal, valued at £1.4 billion, will grant Lloyds full control of SPW, which was founded in 2019 and serves approximately 60,000 customers with nearly £17 billion in assets.
The takeover is part of Charlie Nunn's five-year plan to bolster Lloyds' profitable lines, a trend seen among banking chiefs. SPW's acquisition will allow Lloyds to leverage Schroders' advanced technology and investment platforms, while also opening SPW's wealth management services to Lloyds' extensive client base, numbering over three million mass affluent customers.
The transaction aims to broaden Lloyds' wealth offering, from digital investments and pensions to comprehensive financial planning and advice through SPW. This strategic move follows a recent setback when Jo Harris, the former chief executive of Lloyds' mass affluent division, left the bank after launching a new 'premier' service earlier this year.
The acquisition of SPW is expected to strengthen Lloyds' position in the wealth management sector. With full control of SPW, Lloyds aims to deepen its relationships with mass affluent customers, providing them with a more comprehensive range of wealth management services. The transaction is subject to regulatory approval and is anticipated to complete in the first half of 2023.
