Lloyds Banking Group, which is 43% owned by the British Government, has said that it has agreed to sell its Insight fund management business to Bank of New York Mellon Corporation in a £235 million deal.

The deal, which is hoped to be completed in the final quarter on 2009, would fetch Lloyds a sum of £200 million in cash plus £35 million in equity.

The sale will include Insight's external fund management operation, which manages assets of about £80 billion for pension schemes and others.

As a result of review, out of Insight's nearly 500 staff, some will go to new owners and the rest will be moved to Scottish Widows Investment Partnership, which possesses presently £83 billion of assets. This will soar to £125 billion after the transfer of the assets.
 
The concerned unions are being consulted by the bank.