Project Verde has collapsed. The Co-Operative bank has pulled out of the long-running deal to buy the 632 branches that Lloyds Banking Group has to dispose of under European state aid rules. Via City Briefing, The Telegraph
The Co-Op, which was set to double in size under Verde, has blamed the collapse of the deal on “the worsened outlook for economic growth” but also the “increasing regulatory requirements on the financial services sector in general.”
Lloyds says Verde branches will now be branded as TSB Bank and operated separately until they can be floated on the stock exchange. But there could be another bid battle for the branches yet, perhaps from Virgin Money, JC Flowers or NBNK. Even so, it’s a big blow to the Government’s effort to boost bank competition.
The planned sale of more than 600 UK bank branches by Lloyds Banking Group to the Co-op group has fallen through.
Lloyds said in a statement that the Co-op felt it could “no longer proceed” given the continued economic downturn. Lloyds said it will now seek to sell the branches as a stand-alone bank through a stock market listing.
