It is believed that Aberdeen Asset Management is planning to acquire Scottish Widows Investment Partnership (SWIP) from Britain's Lloyds Banking Group in a deal valued at around 500 million pound or $804.53 million.

According to people closer to the matter, the deal is expected to be announced on Monday and will be mostly in stock. The spokesperson of both Scottish Widows and Aberdeen Asset Management did not offer any comments on the matter. Under the deal, Lloyds will acquire just under 10 per cent of Aberdeen Asset Management.

Media reports suggest that Aberdeen Asset Management made a rival offer for SWIP from Australia's Macquarie Group Ltd. The deal would create the largest listed fund manager in Europe. Aberdeen Asset Management will be able to boost its assets under management more than 70 percent to close to 350 billion pounds after the acquisition and allow it to surpass rival Schroders to become the largest player on the continent.

The deal would be a reversal of Aberdeen's strategy to focus on growth without acquisitions and returning cash to investors. Chief Executive Officer Martin Gilbert had previously called an acquisition of Scottish Widows Investment "highly unlikely."