US Bank Goldman Sachs has entered the competition to manage a £109bn investment contract put out to tender by Lloyds Banking Group (LBG).

Sky News reported that Goldman Sachs Asset Management has reached the second round of bidding for the contract, along with Blackrock, JP Morgan Asset Management and Schroders.

The process commenced when Lloyds pulled out of its deal with Standard Life Aberdeen (SLA) following the merger of Standard Life and Aberdeen Asset Management. Aberdeen had previously managed the contract since 2014, but Lloyds said that the merger with Standard Life resulted in the combined company being a competitor and ended the deal.

In its response to the decision, SLA said it had “informed LBG that it does not agree that, following the merger of Aberdeen Asset Management and Standard Life, SLA was in material competition in the UK with LBG and that, therefore, SLA does not consider that LBG, Scottish Widows or their respective affiliates has the right to terminate the asset management agreements”.

LBG said: “SLA is a clear and material competitor of Scottish Widows and LBG in the UK.”

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