Aberdeen Asset Management is set to buy Scottish Widows Investment Partnership (SWIP) from Lloyds Banking Group.

The transaction is thought to be valued in the region of £500 million (US$803 million), based on Aberdeen’s market value at the end of last week.

According to the media reports, the deal would see Lloyds take approximately 10% a stake in Aberdeen.

The deal is expected to increase Aberdeen’s assets to about £350 billion, surpassing Schroders as Europe’s biggest publicly traded fund company.

Meanwhile, Martin Gilbert, CEO of Aberdeen, has disclosed that the Lloyds talks also extended to setting up a so-called ‘strategic partnership’ with the lender.