Lloyds sale to The Co-operative falls through

The Co-operative Group has pulled out of a deal to buy over 600 branches from Lloyds

By Nicole Hamer |

12:03 24 April 2013

A deal between Lloyds Banking Group and The Co-operative Group has fallen through after The Co-op has pulled out. This relates to Lloyds’ sale of 632 bank branches to The Co-op,which was a deal referred to as Verde.

 

One reason being attributed to the decision is that The Co-op did not see it to be in the best interests of its members. Apparently it is also because of finances that this came about.

 

Chief Exec of The Co-operative Group Peter Marks said: “After detailed and thorough consideration of all aspects of the Verde transaction, we have decided, at this time, that it is not in the best interests of our members to proceed with the transaction.”

 

He added: “Having worked closely and constructively with Lloyds we are naturally disappointed to have reached this conclusion.”

 

In a statement from The Co-op, the group related to finances saying they viewed the deal “against the backdrop of the current economic environment” as well as “the worsened outlook for economic growth”.

 

Group Chief of Lloyds Antonio Horta-Osorio has said he was “disappointed” that the deal collapsed. Reportedly, Lloyds may look to the stock market with regards to the branches.

 

Lloyds had to put the branches up for sale after it was bailed out by the government in 2008.

 

The Co-operative said they would buy them last year, which would have meant there may have been a new contender on the UK’s banking scene.