Co-op chief determined to branch out with Lloyds bid
CO-OPERATIVE Group chief executive Peter Marks has spoken of his ambition to buy 630 branches from Lloyds Banking Group, arguing the deal will enable his organisation to become a ‘real challenger bank’ on the high street.
Marks, who’s deal track record is impressive – he led the Co-op’s takeover of grocery Somerfield and also the merger with Britannia Building Society, told the BBC: “We are very keen on the transaction, we think we are the most appropriate acquirer of these branches because we already have an established and well-respected bank.
“If you add 630 odd Lloyds branches to our existing 350 branches then you have got just short of 1,000 branches which we feel is a real challenger bank, and that is what this country needs, another challenger bank to compete with the big five.”
The Co-op is in the final round of bidding for the branches, which Lloyds has been forced to sell by EU competition regulators after it received taxpayer bail-outs during the credit crisis.
The Manchester-based mutual, which as well as financial services and food retail has farming, funerals and pharmacy businesses, faces competition from new venture NBNK.
A decision on the deal, said by market observers to be worth between £1bn to £1.5bn is due before Christmas. Lloyds says it may also float off the branches as an alternative to a sale.
The assets being sold contributed about £500m of pretax profit in 2008 and income of about £1.4bn.
NBNK was formed last year as a vehicle to acquire UK banking assets, although it has well-known names on its board, such as former Northern Rock boss Gary Hoffman and former Lloyd’s of London insurance chairman Lord Peter Levene.
:: Peter Marks is playing drums in a rock bank made up of Co-op staff, aiming to raise cash for the charity Mencap. The band, called Angel Square, has released a version of the Take That track Greatest Day, which is available to download on iTunes. The Co-op is trying to raise £5m for Mencap this year.
