Lloyds TSB Group agreed Wednesday to buy Scottish Widows Fund & Life Assurance Society for $11.12 billion in cash.

Expected to close in the first quarter, the deal would nearly double, to $112.35 billion, Lloyds' assets under management. Lloyds would also gain a life and pensions business with 1.9 million policyholders. The bank, Britain's sixth-largest, now controls 4% of its home market in pensions and investments.

Lloyds wants to expand its products and gain distribution, a spokeswoman said. Scottish Widows markets through independent advisers, a new channel for Lloyds.

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