Lloyds TSB and Fortis have held exploratory talks on a possible tie-up of the groups’ asset management arms, according to a report in the Fi...

Lloyds TSB and Fortis have held exploratory talks on a possible tie-up of the groups’ asset management arms, according to a report in the Financial Times. The talks covered a possible distribution agreement to a full merger between the UK’s fifth largest bank and the Belgian-Dutch financial conglomerate. A merger between the firms would create one of the largest pan-European asset managers with more than $200 billion under management. It would also have consequences for both firms’ private banking businesses, which are currently in an expansionary phase. The FT revealed that Fortis has been looking for a joint venture partner for its asset management business since April and has instructed Merrill Lynch to conduct the search. BNP Paribas and Schroders have also been approached by Fortis, according to the report.