The transfer of Intelligent Finance to a new bank.
What’s happening and why.
Intelligent Finance is part of Lloyds Banking Group. Following the requirement to increase competition in the UK Banking sector the Group will be transferring part of its business to a new bank. Intelligent Finance will be moving to form part of this new bank.
On 14 December 2011, we announced that The Co-operative Group is the preferred bidder, and we are taking forward exclusive negotiations with them. We hope that these discussions will lead to an agreement by the end of March 2012. At the same time we’re also continuing to pursue the option of an Initial Public Offering (IPO), where shares in a new bank would be offered to investors through a public flotation.
The reasons for the sale go back to 2009, when Lloyds TSB acquired Halifax Bank of Scotland and Lloyds Banking Group was created. As a result of the state aid received by Lloyds Banking Group, the European Commission ruled that we should sell part of our business to a new owner by November 2013. The aim is to increase competition in the UK banking sector and create a successful new bank.
In addition to Intelligent Finance, the sale includes some Lloyds TSB branches in England and Wales and most of the accounts held there, all Lloyds TSB branches in Scotland and all Cheltenham & Gloucester branches. Intelligent Finance will continue to provide the same level of service that you’re used to, with the same range of products and services so you can carry on your day-to-day banking in the same way.
Next steps.
We’ll continue our discussions with The Co-operative Group. We’ll also carry on looking at the option of an IPO, where we’d offer shares in a new bank to investors through a flotation on the London Stock Exchange.
The Co-operative Group has a strong record in delivering excellent customer service and products that customers want and value. If the sale is agreed, they would have over 1,000 high street branches and significant growth potential, making them a strong bank and helping to increase competition in the UK banking sector. Any sale or IPO is subject to regulatory approval.
Keeping you up to date.
We’ll be writing to let you know what the transfer means for you as an Intelligent Finance customer, and keeping you up to date at every stage. There will not be any changes for some time though, and you can carry on banking as normal. And we’ll be updating our website with further information throughout the process, so check for updates in the future.
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