Crunch time for Co-op in Lloyds negotiations
The Co-operative Society is reportedly set to make a decision this week on whether it should press on with its tortuous negotiations with Lloyds Banking Group over the acquisition of 632 branches from the part-nationalised lender.
The Co-operative Society is reportedly set to make a decision this week on whether it should press on with its tortuous negotiations with Lloyds Banking Group over the acquisition of 632 branches from the part-nationalised lender.
The Financial Services Authority (FSA) has put a road block on progress towards the deal, newspaper reports say, by insisting that the Co-op holds an additional £3bn of capital at group level. In effect, the FSA would be given supervisory powers over the whole of the mutual society, not just the banking arm; as well as banking services the Co-op offers insurance, legal services and funeral care, plus it owns a number of supermarkets, travel agents, electricals stores and pharmacies.
With NBNK, the banking start-up headed by former Northern Rock chief executive Gary Hoffman, having submitted a revised £2bn bid for the branches - around £0.5bn more than the Co-op is said to be offering - this week might be a convenient time for the mutual society to bow out of negotiations, but for now it is the only interested party with which Lloyds is negotiating. The exclusivity deal between the two was extended at the end of March.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Lloyds has to sell the branches in order to comply with a European Commission order related to monopolies concerns over Lloyds' disastrous merger with HBOS. Lloyds has until November 2013 to complete the sale.
JH
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
How high earners could boost their pension by thousands and cut childcare costs
Salary sacrifice could boost your pension by thousands, while also helping you save on childcare costs. We delve into the numbers.
-
Monzo launches 11 ETFs via Blackrock to help savers invest
Monzo customers can now invest BlackRock's iShares ETF range via its banking app, making investing more accessible to millions