Competition law challenge over bank merger plan rejected

A legal challenge against the decision to waive competition law to allow the planned merger of HBOS and Lloyds TSB was rejected today.

The Merger Action Group (MAG), a group of businessmen, bank customers and shareholders opposed to the proposed takeover, wanted the decision referred back to British Business Secretary Peter Mandelson, and then put to the Competition Commission.

They claimed Mandelson was constrained by the stated position of the Chancellor of the Exchequer and the Prime Minister over the matter.

The Competition Appeal Tribunal issued its verdict on the challenge after two-day hearing in central London held under Scottish law.