LONDON, May 8 (Reuters) - Standard Life Aberdeen said on Tuesday it had begun dispute resolution talks with Lloyds Banking Group after the lender gave notice to cancel an agreement to manage more than 100 billion pounds ($135.88 billion) of its assets.
Lloyds told the investment manager on February 14 that it intended to cancel the mandate at the end of a 12-month notice period, citing competition concerns following the merger of Aberdeen and Standard Life Investments.
SLA said it does not agree that the combined entity was in material competition in the UK and that, therefore, SLA does not consider that the bank has the right to terminate the asset management agreements.
The annual revenue associated with the asset management contracts represents around 130 million pounds or 4.4 percent of SLA’s full year 2017 pro forma revenue.
SLA said it would provide a further update in due course. ($1 = 0.7359 pounds) (Reporting By Sinead Cruise, editing by Clara Denina)