Partner Article

Lloyds and Co-op reach “understanding” over branch sales

Lloyds Banking Group has reached an agreement with the Co-operative bank to sell 632 Lloyds TSB and Cheltenham and Gloucester branches.

The Co-op’s prospects were strengthened after its rival bidder NBNK pulled out of the race. Brussels ordered that sale after Lloyds purchased Halifax Bank of Scotland during the financial crisis, whilst also requiring Government support.

Lloyds now have until November 2013 to complete the sale. Banks to be sold represent 6% of the UK marketplace, and have around 5 million customers.

Following the sale, the Co-op will increase its share of the retail banking sector from 1% to 7%.

Commenting on the sale, a Treasury spokesman said: “Although the deal has not been finalised, we warmly welcome this development as a positive step in the process of delivering the Lloyds divestment and the benefits that will have for competition and the mutuals sector. “

NBNK, was set up by former Lloyd’s of London insurance head Peter Levene, and run by former Barclays and Northern Rock executive Gary Hoffman.

This was posted in Bdaily's Members' News section by Ruth Mitchell .