17 jul: Test
24 jul: Bobler fra dybet fik hammerslag på rekordpriser ved nyligt afhold..
19-07-2012 08:38:00

Co-Operative Buys Lloyds Branches, Leapfrogs into Big League

Relateret indhold

By Max Colchester and Jessica Hodgson

LONDON--Lloyds Banking Group PLC (LYG) Thursday said it will sell 632 of its retail branches to the Co-Operative Group Ltd (CPBB.LN), sealing a long-awaited deal that will transform the funerals-to-food group into the U.K.'s sixth-largest retail banking business with around 10% of the U.K. market.

Lloyds agreed to sell the branches for an initial consideration of GBP350 million, and up to an additional GBP400 million in present value--equivalent to around GBP800 million on a nominal basis subject to performance of the Co-Operative groups combined banking businesses over a 15-year period.

The figure is significantly below the estimated GBP1.5 billion that was reportedly offered when discussions began a year ago, reflecting the decline in the value of bank assets over the period.

Lloyds, which is roughly 40%-owned by the U.K. government, has to sell the branches on condition of receiving state aid when it was bailed out in 2008. But the sale, code-named Verde, has been dogged by regulatory issues related to the experience of the Co-Op's board and the amount of capital the group would have to hold if it boosted its banking business.

The sale of the branches is heralded by the British government as a way to boost competition in the U.K. banking sector. "This is another step towards creating a new banking system for Britain that gives real choice to customers and supports the economy," George Osborne, the U.K. Chancellor, said in a statement Thursday.

The Verde business has 632 branches and makes up 6% of the U.K. branch network and, when combined with the Co-Op's existing banking business, it makes up around 7% of U.K. current accounts.

The U.K.'s Independent Commission on Banking said a standalone bank needs to achieve 6% market share in order to be competitive.

"We believe the Co-Operative will be a good owner for our business, customers and colleagues, and the combined banking business will be a significant competitor on the high street with nearly 10% of today's U.K. branch network," Antonio Horta-Osorio, Lloyds' chief executive, said in a statement.

The Lloyds statement said the Co-Operative Group was expected to inject the branches with GBP1.5 billion of equity capital. The branches will have approximately GBP11 billion of risk-weighted assets on a standardised basis.

-Write to Max Colchester at max.colchester@wsj.com

(Ainsley Thomson in London contributed to this article.)

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

July 19, 2012 02:38 ET (06:38 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

GN vil have Leo Pharma-topchef ind i bestyrelsen

19-02-2018 14:30:12
Der er lagt op til en enkelt udskiftning i bestyrelsen hos GN Group, når det danske selskab afholder ordinær generalforsamling i hovedkvarteret i Ballerup den 13. marts.Carsten Krogsgaard Thomsen, der er finansdirektør hos NNIT og i øvrigt bror til Mads Krogsgaard Thomsen, der er forskningsdirektør hos Novo Nordisk, har meddelt bestyrelsen, at han ikke ønsker at genopstille.I stedet foreslår GN Gr..

Aktier/middag: Defensive aktier sørger for samlet nedgang til C25

19-02-2018 11:36:39
Mens Mærsk-aktierne stiger forud for tirsdagens kapitalmarkedsdag, så er der fald til flere af de defensive eliteaktier, og det sørger mandag middag for et samlet minus for C25-indekset. Omkring middagstid ligger det danske eliteindeks 0,4 pct. lavere i 1138,49. Holder det dagen hjem, vil det være første gang set over fire handelsdage, at C25-indekset lukker lavere end dagen før.- Der er rimeligt ..

Hartmann: Direktør Ulrik Kolding Hartvig død efter cykelulykke

19-02-2018 06:34:17
Den børsnoterede virksomhed Brødrene Hartmann er søndag blevet ramt af et alvorligt chok.Selskabets administrerende direktør, Ulrik Kolding Hartvig, er afgået ved døden ved en cykelulykke. Han blev 48 år.Selskabet fortæller om dødsfaldet i en pressemeddelelse, men har ingen yderligere oplysninger om omstændighederne i forbindelse med direktørens død.- Vi er dybt berørte over Ulriks pludselige og a..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Hartmann: Direktør Ulrik Kolding Hartvig død efter cykelulykke
2
Genmab OPTAKT Q4 21/2: 2018-prognosen kommer under lup
3
Aktier/tendens: Mærsk i fokus i ventet positiv åbning
4
Briter har 10 dage til at bruge 1,8 milliarder kroner - citat
5
Novo stævnet sammen med konkurrenter i USA - citat

Relaterede aktiekurser

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2018  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
19. februar 2018 16:55:29
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20180209.1 - EUROWEB1 - 2018-02-19 16:55:29 - 2018-02-19 16:55:29 - 1 - Website: OKAY