19 jul: Aktier/åbning: FLS i front og lettelse til Torm
19 jul: B&O: Fremskynder kinesisk vækst med stor samarbejdsaftale - NY
19-07-2012 09:27:00

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

Relateret indhold

--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

Aktier/middag: Skulderklap til Mærsk trækker eliteindekset op

28-07-2016 11:38:00
Konglomeratet A.P. Møller-Mærsk sejler frem torsdag middag med pæne stigninger, og det trækker det samlede danske eliteindeks op i mere positive takter end i re..

Tysk Vestas-rival hæver forventningerne oven på stærkt halvår

28-07-2016 08:12:28
Nordex, der er konkurrent til danske Vestas, hæver forventningerne til driftsindtjeningen i 2016.Det fremgår af den tyske vindmølleproducents regnskab for årets..

Bavarian/dir.: Gul feber-vaccine er et forsøg med lille profit

27-07-2016 16:12:59
Det er et gratis studie - endda med lidt lommepenge - når Bavarian skal gennemføre et fase 1-forsøg med sin vaccine mod gul feber på bestilling af et institut u..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Vestas-konkurrent opjusterer efter stor fremgang
2
Vestas/Danske: Der er basis for Vestas-opjustering
3
Zealand Pharma: FDA godkender første lægemiddel - NY
4
Veloxis-aktien bragede 11 pct. frem oven på generalforsamling
5
Aktier/åbning:: Klap på skulderen løfter Mærsk i grønt marked

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.
 
28. juli 2016 14:22:20
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20160728.2 - EUROWEB4 - 2016-07-28 14:22:20 - 2016-07-28 14:22:20 - 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