Co-op deal to buy Lloyd's branches

Co-op deal to buy Lloyd's branches

A proposal aimed at kick-starting the Co-op’s stalled acquisition of 632 Lloyds branches in the UK has been put to the markets regulator, it was reported today.

The Co-op’s game-changing deal for Lloyds’ “Project Verde” branches is under threat because the Financial Services Authority (FSA) is thought to have concerns over the mutual’s management capabilities and governance.

However, the Sunday Telegraph said a plan now under consideration involved Verde’s interim management team transferring with the business to run the Co-op’s enlarged banking business.

And the Verde branches would not be removed from Lloyds’ technology platforms and would instead be reliant on the high street bank for its operation.

Lloyds has until November 2013 to offload the Verde estate as a result of a penalty imposed by the European Union for accepting a taxpayer bailout.

The assets, which come with the brands TSB and Intelligent Finance, account for a 4.6% share of the UK current account market and up to 19% of Lloyds’ mortgage book, with around five million customers.

A period of exclusivity between Lloyds and Co-op on the Verde sale ended two weeks ago and has potentially opened the door to NBNK, the new banking venture led by Lord Levene and former Northern Rock boss Gary Hoffman.

It has made a rival offer under which it plans to “create a new, large challenger bank and brand that will shake up UK high street banking”.

The new arrangements with the Co-op still meet the terms of the EU’s ruling, given the branches would be under the control of a third-party. However it is unclear how it will affect the price Lloyds might expect from the Co-op.

More in this Section

Serviced-office firm Iconic sees half of office workers returning by summerServiced-office firm Iconic sees half of office workers returning by summer

'Heartening to see' 30 jobs saved as High Court approves survival scheme for catering supplier'Heartening to see' 30 jobs saved as High Court approves survival scheme for catering supplier

Airlines handed £1.8 billion in emergency coronavirus loans from Bank of EnglandAirlines handed £1.8 billion in emergency coronavirus loans from Bank of England

Kerry company Fexco plans to cut at least 150 staff due to coronavirusKerry company Fexco plans to cut at least 150 staff due to coronavirus


Lifestyle

Eve Kelliher consults a Munster designer to find out what our future residences, offices and businesses will look likeHow pandemic life is transforming homes and workplaces

Nidge and co return for a repeat of a series that gripped the nation over its five seasons.Friday's TV Highlights: Love/Hate returns while Springwatch looks at rewilding

A family expert at the charity Action for Children advises how parents can maintain contact with kids after separation if there’s an access problem.My ex won’t let me see my child because I haven’t paid maintenance during lockdown. What can I do?

THREE years ago, when radio presenter Daniella Moyles announced that she was quitting, few could have guessed from her upbeat Instagram post the inner turmoil she’d been enduring.Daniella Moyles on how she beat anxiety

More From The Irish Examiner