BlackRock has won a mandate to manage £30bn of the £109bn Lloyds Banking Group portfolio put up for grabs after the bank this year said it would drop current manager Standard Life Aberdeen.

The remaining £80bn of assets are still up for grabs, Lloyds said.

Schroders had edged out BlackRock in recent weeks to secure the biggest chunk of the mandate, after it offered to enter into a wealth management joint venture with the bank to sweeten the deal.

Lloyds said on Friday it would also pursue a “strategic partnership” with BlackRock on top of the £30bn mandate, which would include collaboration in alternative asset classes, risk management and investment technology.

Antonio Lorenzo, the chief executive of Scottish Widows, the insurer owned by Lloyds, said BlackRock had been chosen through a competitive tender, “in which it clearly demonstrated its global market leading capabilities and deep expertise in the UK market”.

The battle for the contract has been raging since February, when Lloyds said it would terminate the arrangement with SLA over competition concerns. Aberdeen’s merger with Standard Life made it more of a direct rival to Lloyds’ Scottish Widows insurance unit.

Lloyds has remained locked in an acrimonious dispute with SLA for much of that time, with SLA demanding a £250m break fee from Lloyds for ending the deal.

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