Advertisement

Lloyds TSB buys HBOS

Lloyds TSB will pay £12.2bn for HBOS in a rescue that will create the country's biggest bank. It is a takeover, not a merger; so all HBOS companies will be integrated into Lloyds TSB, sold or closed.

The deal was thrashed out over 48 hours against a backdrop of HBOS's tumbling share price. The new group said it will retain a strong corporate presence in Scotland and will hold key meetings there.

The Government is waiving normal competition law to help the deal through. But it faces a tumultuous passage through Parliament before it completes in about three months.

HBOS had no choice but to find a "white knight" to protect it from bankruptcy, as happened at Lehman Brothers when the market ran out of goodwill for the bank.

The FSA, who helped find a suitor, says that the merger with Lloyds TSB is a welcome move as it is likely to enhance stability within financial markets and improve confidence among customers and investors in the UK financial sector.

Comment on this page »

Features

Latest news

Chelsea and Westminster named the best place to work in the NHS for 2015

Nuffield Health opens doors of new Cambridge Hospital

Nuffield Health plans to open state-of-the-art diagnostic suite

Lloyds TSB buys HBOS
Advertisement
Advertisement
Connect with us on:

This site compiles with the HONcode standard for trustworthy health information