Co-op bids for Lloyds branches

THE Co-operative has submitted a bid for the network of 632 bank branches being sold by Lloyds Banking Group.

The sale, which is being made to saftisfy European state aid rules following a taxpayer-funded bail-out of the bank in the wake of its acquisition of Bank of Scotland, is one of three bidders who had submitted a bid for the branch network ahead of last week’s deadline, according to reports.

The others were Richard Branson’s Virgin Money business and NBNK, which is a specialist vehicle set up to buy the branches led by outgoing Lloyds of London chairman Lord Levene.

Other organisations who were reported to be interested in submitting bids were National Australia Bank, which owns both Yorkshire Bank and Clydesdale Bank in the UK, and insurance entrepreneur Clive Cowdery, who was bidding in a personal capacity as opposed to bidding though stockmarket-listed company Resolution.

Lloyds’ sale of the branch network is expected to fetch around £2bn and it is expected to finalise a shortlist of bidders by the end of the month.