Insight sold to BNY Mellon

LLOYDS Banking Group has confirmed that it is to sell its Insight Investment unit to Bank of New York Mellon in a &pound;235m cash-plus-shares deal.<br /><br />The bank, which has been conducting a review of its asset management businesses with an eye to disposals, said it had reached an agreement in principle with BNY Mellon, ending months of speculation.<br /><br />The transaction, scheduled for completion in the last quarter of the year, will see BNY Mellon pay &pound;200m in cash and &pound;35m worth of equity to acquire Insight&rsquo;s external fund management operation, which manages around &pound;80bn of assets.<br /><br />Once the US bank has folded the unit into its own asset management operations, BNY Mellon will have more than $1 trillion (&pound;605bn) under management, it said.<br /><br />Ronald O&rsquo;Hanley, president and chief executive officer of BNY Mellon Asset Management, said the acquisition would help the business expand Insight&rsquo;s specialist area of liability driven investment, which he said was &ldquo;a critical tool for meeting the needs of current and future retirees&rdquo;.<br /><br />Abdallah Nauphal, Insight&rsquo;s chief executive officer, said the transaction would &ldquo;realise Insight&rsquo;s full potential&rdquo;.<br /><br />Lloyds will now embark on a restructuring of its remaining asset management operations, which it said would be integrated into its Scottish Widows Investment Partnership unit.<br /><br />The transfer of assets not bought as part of the Insight deal will boost Scottish Widows Investment Partnership&rsquo;s assets under management from &pound;83bn to roughly &pound;125bn.<br /><br />The deal is the latest sign of consolidation in the industry, after Barclays sold its Barclays Global Investors unit to BlackRock last month in a cash-plus-shares deal worth $14.2bn.<br /><br /><strong>JP MCGRATH<br />HEAD OF FIG TEAM CLOSE BROTHERS</strong><br /><br />US bank BNY Mellon hired Close Brothers to act as financial advisers on the purchase of Insight.<br /><br />The Close Brothers team was led by John Paul McGrath, who heads Close Brothers&rsquo; financial institutions group (FIG).<br /><br />McGrath joined the company from NM Rothschild, where he focused on financial services M&amp;A, building up a wealth of experience, from acquisitions and disposals to capital raising and IPOs.<br /><br />Deutsche Bank acted for Lloyds on the disposal, using a team of six from its FIG team, led by Tadgh Flood.<br /><br />Flood advised Barclays on its abortive bid for ABN Amro and was also involved in the Irish banking bailout.<br /><br />Lloyds took legal advice from Allen &amp; Overy, whose team was led by corporate partner Alistair Asher and senior associate Duncan Bellamy, assisted by corporate associates Craig Harris and Edward Timmins.