The Co-operative Group statement re: Lloyds Banking Group branch assets
The Co-operative Group today is pleased to confirm that it has been granted preferred bidder status in the process currently being run for the sale of the Lloyds Banking Group branch assets. There can be no certainty that a transaction will be completed or the terms on which it might be concluded. Any transaction would be subject to regulatory approval. Further announcements will be made as appropriate.
Peter Marks, Group Chief Executive of The Co-operative Group, said:
"We have a clear strategy for driving The Co-operative Group forwards. As part of that we have been working to build upon our strong foundations in banking to ensure customers have a real alternative on the high street. We are a people’s bank – mutually owned, with profits shared between members and also used to invest for the long-term. Our interest in the Lloyds Banking Group's branch assets needs to be seen in this context. We think a combination of these branches and our own would significantly strengthen our position as a real challenger in relationship banking in the UK.
"Clearly our bid for the assets is non-binding and we would only proceed if we could reach an agreement that was in the interests of our members and other stakeholders. At the same time, acquisition is not the only route we have for growing this business. Our bank has continued to go from strength to strength following the merger with Britannia and we are pushing further through initiatives such as our in-store banking program. We are, however, pleased to have been granted preferred bidder status and look forward to working with Lloyds to try to reach agreement."
For further information contact:
Russ Brady / Patrick Tooher
The Co-operative Group
Tel: 0161 827 5856 / 0161 903 4187
Susanna Voyle / Lucy Legh
Tulchan Communications
Tel: 020 7353 4200
FAQs
Q. What do Lloyds Banking Group assets include?
Assets include the TSB brand and Intelligent Finance (IF) along with 632 branches. This also includes the mortgage, savings and current account portfolio and customers.
Q. Is this a done deal?
No, absolutely not. There can be no certainty that a transaction will be completed as there is still a lot of work to do and we would only proceed if we could reach an overall agreement that was in the best interests of our members, customers and colleagues.
Q. How much will the potential deal cost?
We cannot talk about financing at this stage. We believe the offer from The Co-operative Group is structured to provide good value for Lloyds and we hope to be able to move forward with it, but there is no guarantee that our offer will be accepted.
Q. How will you absorb the Lloyds branches when you are still integrating Britannia. Are you trying to do too much?
No, absolutely not. The Co-operative Group is the best placed now to do this deal - and we think we would be the best owners of these assets:
- We have the ambition and experience to do the deal
- We have proven expertise in executing and integrating such transactions; a strong top team under the leadership of Peter Marks
- We have a strong financial position
- We are a serious and credible bidder with a proven and established banking track record
- We would be bringing an alternative ownership structure to the High Street
- We have a strong and well-recognised brand; we have excellent credentials for "trust" when this is a key issue for consumers, particularly in financial services
Q. Will you ask members for their consent to do this deal?
The decision on going ahead with a bid for the Lloyds assets is one that will be taken by the Board of The Co-operative Group. The Board of the Group is the top level of a tiered democratic structure, with Board members elected by the wider membership and entirely accountable to them through the national, regional and local democratic structure we have in place.
Our members' interests are fully served, therefore, by the elected Board and for a number of years the overwhelming desire from our members has been for the Group to increase its branch footprint.
