News Column

European Commission Approves Lloyds Plans To Float TSB

May 13, 2014

Samuel Agini

LONDON (Alliance News) - Lloyds Banking Group PLC's plans to float retail bank TSB on the London Stock Exchange were Tuesday approved by the European Commission.

In a statement, the European Commission said it had extended the original November 2013 deadline because it won't jeopardise the viability of TSB. Instead, the UK's request to push the deadline to December 31, 2015 has been approved.

The European Commission required Lloyds to sell the 630 branches as a condition of its state bailout after it ran into trouble due to its acquisition of HBOS in the midst of the financial crisis. There is a possibility of further extending the deadline if the state of the UK capital markets doesn't allow an orderly disposal by the state, the EC said. A deal to sell the branches to the troubled Co-operative Bank was called off last year after the mutual fell short of capital requirements.

"Establishing TSB as a standalone market player will increase competition in the UK market for retail banking services. The Commission has agreed to extend the deadline for divesting TSB because the UK authorities and LBG have demonstrated their commitment to create a viable and competitive bank," JoaquÍn Almunia, the European Commission's Vice President in charge of competition policy, said in a statement.

"The proposed changes in the divestment perimeter will enhance TSB's profitability and preserve its viability as a challenger in the market," Almunia said.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters