Exmouth Lloyds involved as bank deal collapses

PUBLISHED: 14:27 24 April 2013 | UPDATED: 14:27 24 April 2013

Lloyds Banking Group. Photo John Stillwell/PA Wire.

Lloyds Banking Group. Photo John Stillwell/PA Wire.

The Co-operative Group has today pulled out of a deal to buy more than 600 branches of Lloyds Banking Group - including the Exmouth branch.

Lloyds had been ordered to sell the branches by European regulators to increase competition in the banking sector, and the Co-op had agreed to buy them last year.

However, in a statement, the Co-op said it had decided it was not in the best interests of the group’s members to proceed with the deal.

The statement continues: “This decision reflects the impact of the current economic environment, the worsened outlook for economic growth and the increasing regulatory requirements on the financial services sector in general.”

In response, Lloyds says it will now be floating the 631 branches, known as Project Verde, in a separate listing on the stock market, and rebranding them this summer as TSB, from which point they will operate as a separate business within Lloyds Banking Group.

In a statement, Lloyds said: “There are no direct impacts to customers as a result of today’s announcements. Customers don’t need to do anything and can carry on banking in the same way as they do now, accessing their accounts as usual via the branch, telephone and online banking.

“The group is committed to ensuring that the transfer to the TSB Bank is as smooth as possible for customers and will seek to minimise any disruption during this process.”

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