LONDON (AP) — Shares in Aberdeen Asset Management PLC have surged after the company struck a deal with Lloyds Banking Group PLC that analysts say will make it Europe's biggest independent fund manager.
In a statement Monday, Aberdeen says it will buy Lloyds unit Scottish Widows Investment Partnership for 550 million pounds ($887 million) in shares.
In return, Lloyds — still around a third-owned by the British government following a bailout — will get a 9.9 percent stake in Aberdeen. A further 100 million pounds cash payout could be due over five years if performance criteria are met.
Aberdeen shares were up 13.2 percent in morning trading in London as investors cheered the prospect of another 136 billion pounds worth of funds being added to Aberdeen's current portfolio of around 200 billion pounds.