View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Distribution
July 19, 2012updated 04 Apr 2017 1:05pm

Coop agrees bargain deal for 632 Lloyds branches

The Co-operative (Coop) Bank will become the UKs sixth-largest bank by branches as a result of agreeing a deal to snap up 632 branches from Lloyds Banking Group A statement from the Coop and Lloyds said that the respective banks were now working towards agreeing definitive, binding documentation, subject to the satisfactory completion of further due diligence and Board approvals

By Douglas Blakey

The Co-operative (Coop) Bank will become the UK’s sixth-largest bank by branches as a result of agreeing a deal to snap up 632 branches from Lloyds Banking Group.

A statement from the Coop and Lloyds said that the respective banks were now working towards agreeing definitive, binding documentation, subject to the satisfactory completion of further due diligence and Board approvals.

The banks will aim to close the deal before the end of November next year.

At first glance, the deal represents a bargain for the Coop.

The Coop is paying only £350m up-front for the branches with up to a further £400m based on the performance of the branches over the next 15 years.

Once the deal concludes, the Coop will have a UK current account market share of around 7%.

The Coop Bank customer numbers will grow to around 11m.

Peter Marks, group chief executive of The Co-operative Group, said:

“We’re delighted to be announcing that we have reached agreement in principle with Lloyds Banking Group on the terms of this important and transformational transaction.

This deal would deliver the biggest shake-up in high street banking in a generation. Consequently, we believe this would be a great deal for customers, for the public, for UK banking generally and for The Co-operative Group, in particular.”

Lloyds Banking Group will remain the largest UK bank by branches with a reduced network of around 2,200 outlets, ahead of Royal Bank of Scotland/NatWest (RBS) with approximately 1,900 units.

Santander will rank third with 1,700 (once it finalises a deal to snap up over 300 branches from RBSL, ahead of Barclays with 1,630.

HSBC will remain the fifth-largest bank by UK branches with 1,350 ahead of the Coop with around 970 outlets. Nationwide with 700 and National Australia Bank (under the Clydesdale Bank and Yorkshire Bank brands) with 340 outlets round off the top eight.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Retail Banker International