Marks treading carefully on Lloyds branches deal

CO-OPERATIVE Group chief executive Peter Marks has warned that the potential acquisition of more than 630 bank branches from Lloyds Banking Group is not a done deal.

He vowed not to rush in to the deal – said to be worth £1bn – by not doing “proper, thorough analysis and due diligence” and said the group is working through a number of issues “regulatory and economic” with the financial regulator the FSA and with Lloyds.

“It is highly complex, it’s not like buying a normal business… this is a carve out of a very large business with millions of customers. It’s highly complex.”

Mr Marks although the Co-op has a proven track record of running a profitable, ethical bank, the Lloyds deal would be a “step change” for the organisation.

He said there was an un-named chief executive waiting in the wings to lead the enlarged banking business if the deal is completed – but stressed there was no certainty this would happen.

“I cannot predict right now whether we will get to the end on this. Talks with both Lloyds and the FSA are ongoing and we are working constructively with both parties. There is no certainty that we will reach a final agreement,” he said.

“There are a number of regulatory and economic issues that we have to be clear about, before we make a transaction.

“What is not in question is our ability to run a bank,” added Mr Marks, who said he expected the group to announce whether it would proceed with the deal “within weeks”.

See also: Co-op suffers profits fall