Lloyds branch sale may see government offloading its shares

Britain’s competition regulator has approved plans by Lloyds Banking Group to sell 631 branches, potentially clearing the way for the coalition government to start selling its shares in the bank this week.

Lloyds must sell the branches, which it has rebranded under the TSB banner, as a penalty for receiving a £20.5bn (€24.4bn) bailout during the 2008 financial crisis, which left Britain holding a 39% stake.

Britain’s Office of Fair Trading (OFT) said yesterday it was happy with Lloyds’ plans, provided it strengthens TSB’s balance sheet prior to a sale of the business next year.