Formation and Divestment of Verde
On 19 July 2012, Co-operative completed its deal to acquire 632 Lloyds Banking Group branches, and 4.8m Lloyds customers along with 7000 staff, as part of the British high street banking shake up request by the EU competition regulations, and by UK government The deal will also include the TSB name which will initially be used as the new name for the branches.
The new company Verde will include:
- Cheltenham & Gloucester savings accounts and all C&G branch-based mortgages, all C&G branches but not the C&G brand
- Lloyds TSB Scotland, including all branch-based customers, but not the Lloyds TSB brand
- c.250 Lloyds TSB branches in England and Wales, including customers based at those branches
- The TSB brand (usable across the UK)
Originally the deal would have seen 620 Lloyds Banking Group branches be sold along with at least 4.6% personal current account market share and approximately 19% of the Group’s mortgage book. Lloyds Banking Group's new CEO António Mota de Sousa Horta Osório told The Banker that one of his first actions would be to "accelerate the sale of the 600 branches" in order to meet the 2013 deadline. Under the plan, the branches would be brought under a new group known internally as Verde. A number of parties expressed interest in the sale. In December 2011 Lloyds announced that its preferred bidder for the assets was Co-operative Banking Group, with which it would enter exclusive talks.
Read more about this topic: Lloyds Banking Group
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