19 jul: EARNINGS PREVIEW: LNG To Boost UK Oil Companies' Second ..
19 jul: PGNiG's 2Q Natural Gas Sales Flat Year-on-Year
19-07-2012 09:27:00

UPDATE: Co-Operative Buys Lloyds Branches, Leapfrogs into Big League

Relateret indhold
Relateret debat
31 mar - 
Really an awesome community where you could find the be..

--Co-Operative tranforms into major bank player through deal

--Lloyds Sells 632 branches for up to GBP800M, including earn-outs

(Rewrites, adds detail, Co-Operative CEO comment.)

By Max Colchester and Jessica Hodgson

LONDON--The Co-Operative Group (CPBB.LN) said Thursday it will acquire 632 retail bank branches from Lloyds Banking Group PLC (LYG), sealing a long-awaited deal that will transform the funerals-to-food group into the U.K.'s sixth-largest retail banking business.

The Co-Op agreed to pay initial consideration of GBP350 million for the branches, and up to an additional GBP400 million in present value--equivalent to around GBP800 million in total subject to the 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.

The Co-Operative, at a stroke, acquires 4.8 million customer accounts through the purchase. Combining this with its existing branch network will give it around 1,000 U.K. bank branches and roughly 7% of all U.K. current accounts, up from its previous share of roughly 2% the Co-Operative said.

The Co-Operative's Group Chief Executive Peter Marks told reporters the acquisition would help deliver "the most significant development in high street banking in a generation," and offer U.K. consumers an alternative to an industry whose image he said had been "badly tarnished," during the financial crisis and by recent events.

Lloyds, which is roughly 40%-owned by the U.K. government, has had 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 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' CEO, said in a statement.

Paul Pester, currently CEO of Verde, will become CEO of the combined Co-Op banking business, subject to FSA approval, the Co-Operative said in a statement.

The Lloyds statement said Lloyds 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.

Mr. Marks said on the conference call that he expected the deal to close, subject to regulatory approval, roughly in mid 2013.

-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 03:27 ET (07:27 GMT)

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

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

Danske/dir: Har indskærpet reglerne for vores handlere

16-04-2014 15:01:39
I lyset af den bøde, Danske Bank har fået for brud på børsens regler, har banken indskærpet handelsreglerne for sine mange handlere. Det fortæller Henrik Voetma..

Danske Bank får bøde på 410.000 kr. af børsen - NY

16-04-2014 13:11:16
Danske Bank har fået en bøde på 500.000 skr., eller 410.500 kr., af selskabet bag fondsbørsen i København, Nasdaq OMX.Bøden er givet, fordi banken angiveligt ha..

Aktier/middag: Nervøse smil præger fortsat markedet

16-04-2014 11:32:27
Investorerne ser ud til at ville fylde aktiedepoterne op, før kursen sættes mod røget laks, snaps og påskeferie. I hvert fald er de danske aktier i glimrende fo..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
Ingen data fundet.

Relaterede aktiekurser

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Relaterede selskaber
Få adgang til information og anbefalinger af relaterede selskaber med PLUS pakken.

Du får adgang til 7 værdifulde investorværktøjer til investering.

Klik her og læs mere om PLUS pakken.
Euroinvestor i andre lande: Euroinvestor.com | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
19. april 2014 11:29:20
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20140324.1 - EUROWEB5 - 2014-04-19 11:29:20 - 2014-04-19 11:29:20 - 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