Co-op bid for Lloyds branches "back on track"

THE Co-operative’s bid to buy the 632 bank branches being sold off by Lloyds appears to be back on track, according to reports.

The Co-operative had been named as preferred bidder to buy the Project Verde assets being sold off by Lloyds to meet state aid rules back in December last year, but its bid appeared to be floundering as regulators were unhappy with its structure and the lack of top-level banking experience at the Co-op.

Rival bidder NBNK recently submitted a new bid for the assets and Co-op’s period of exclusivity ended.

However, reports emerged yesterday which stated that Lloyds and the Co-operative had submitted a revised bid which would see the interim management team in place at the Project Verde branches – led by Paul Pester – continue to lead the enlarged business.

The Project Verde branches’ IT systems would also remain on Lloyds’ own platform, rather than undergoing an integration into the Co-operative Group which has only recently integrated systems at the Britannia Building Society following its 2009 merger.