19 jul: Aktier/tendens: Nye marginale stigninger i vente
19 jul: Elektrolux slog alle analytikere af banen
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

Aktier/Spar Nord: Chr. Hansen junis bedste aktie målt på afkast

30-06-2016 15:58:28
Juni har i den grad været præget af det britiske EU-valg, der har skabt store udsving på aktiemarkederne. Brexit betyder, at C20-indekset ser ud til at afslutt..

Mærsk/SHB: Salg af Oil mere sandsynligt efter tabt kontrakt

30-06-2016 14:01:39
Det er i langt højere grad blevet en mulighed, at A.P. Møller–Mærsk skærer sit olieben fra, efter at Maersk Oil er blevet fravalgt som partner på oliefeltet Al ..

Siemens skal betale erstatning til syge medarbejdere - NY

30-06-2016 11:22:11
Vindmøllefabrikken Siemens Wind er ved Retten i Aalborg blevet dømt til at betale knap en million kroner i erstatning til tre medarbejdere, der blev syge af arb..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Dansk kornkæmpe solgt for milliardbeløb - citat
2
Vestas vinder ordre på 76 MW i Sverige - Google er modtager -NY
3
Aktier/tendens: Udsigt til små fald på aktiemarkedet
4
Genmab/Sydbank: Positivt med canadisk Darzalex-godkendelse
5
Deutsche Bank dykker efter at have dumpet i amerikansk test

Relaterede aktiekurser

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2016  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
1. juli 2016 02:47:11
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20160627.1 - EUROWEB4 - 2016-07-01 02:47:11 - 2016-07-01 02:47:11 - 1 - Website: OKAY

Når du besøger Euroinvestor.dk accepterer du, at der anvendes cookies, som vi og vores samarbejdspartnere benytter til funktionalitet, statistik og markedsføring. Læs mere om cookies på Euroinvestor.dk her

x