(Reuters) - Europe's biggest standalone investment firm Schroders Plc said on Monday it was in talks with Britain's biggest bank Lloyds to work together in the wealth sector, potentially among the top wealth management tie-ups in recent years.
Asset manager Schroders said in a short statement that discussions were ongoing and there was no certainty that they would lead to a deal.
Lloyds issued a similar statement on Sunday, saying any further announcement "will be made at the appropriate time."
Sky news reported on Sunday that Lloyds would merge its 13 billion pound ($17.03 billion) wealth management arm into a new joint venture with Schroders.
A deal, if struck, would come amid widespread consolidation in the broader industry sector.
A tie-up would also give Lloyds access to the asset manager's investment management experience, while Schroders could rack up a lot more customers.
Wealth management contributed 273.3 million pounds to Schroders' net income in 2017 and has been an area of focus for future growth.
The potential deal, part of a three-pronged tie-up between the companies, would see Lloyds owning 50.1 percent of the joint venture, with Schroders owning the rest, Sky News said, citing sources. https://bit.ly/2E1GO2d
It would include Schroders taking on a 109 billion pound investment management contract from Lloyds-owned Scottish Widows that is the subject of a disagreement with Standard Life Aberdeen (SLA), which previously managed the money, Sky News reported.
($1 = 0.7634 pounds)
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amrutha Gayathri and Gopakumar Warrier)
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