Co-operative acquiring Lloyd's Verde business
A deal for The Co-operative to purchase Lloyds' Verde group of banks has been reached.
Merger and acquisition consultants may have been required by the Co-operative Group, as it has confirmed a deal to buy Lloyds Banking Group's Verde business.
Both firms have agreed to proceed on the basis of non-binding heads of terms that will see The Co-operative acquire 632 high-street branches from Lloyds, as well as around 4.8 million customers.
The deal will see The Co-operative pay an initial £350 million for the group, with a further £400 million in additional earn-out payments to be made between completion of the deal and 2027.
Group chief executive of The Co-operative Peter Marks said the acquisition will be the biggest shake-up of the country's banking sector in a generation.
He added: "So far as UK banking generally is concerned, this would be a great deal because it would help restore trust in a sector whose image has been badly tarnished over recent years."
The acquisition meets recommendations set out by the Independent Commission on Banking to create a challenger bank, which will have a market share approaching seven per cent of personal current accounts in the UK.
Posted by Ken Hayes
Source: The Co-operative Group press release, July 19th