The Co-operative Bank has confirmed it is to take over 632 branches from the state-owned Lloyds Banking Group, affecting millions of customers.
Lloyds Banking Group announced today that an agreement had been reached with The Co-operative Group, to buy Lloyds TSB and Cheltenham & Gloucester branches, subject to approval by the Financial Services Authority (FSA).
The move will mean existing Lloyds high street customers will bank under the TSB brand with effect from summer 2013. Approximately 1,000 branches will be owned across the UK by The Co-operative Group, under the TSB name.
Costing an estimated £750 million, The Co-operative Group will pay £350 million upfront, followed by another £400 million subject to subsequent business performance.
The process is expected to be fully completed by late November 2013.
Group Chief Executive of The Co-operative Group, Peter Marks, said, "This deal would deliver the biggest shake-up in high street banking in a generation. Consequently, we believe this would be a great deal for customers, for the public, for UK banking generally and for The Co-operative Group, in particular.
"So far as UK banking is concerned, this would be a great deal because it would help restore trust in a sector whose image has been badly tarnished over recent years."
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