Lloyds News Update: Lloyds Strikes Deal With Westpac Banking Group
Lloyds news update: As they re-establish themselves in the British bank market, Lloyds have agreed to sell their Australian segment to Westpac Banking Corp.
Following the separation of Lloyds and TSB in light of the new European ruling regarding banking options for UK residents, the banking group have also looked to sell lots of their overseas assets. One of which is their Australian sector. The deal will bring a whopping £900m, Lloyds have agreed a deal with Westpac Banking Corp for latter to take over operations of Lloyds Australian banking division.
Lloyds faced a government bailout of £20bn in 2008 and it is since then that they have looked to expand their horizons and concrete themselves in the UK market, where they’re needed. This particular deal should be closed by the end of 2013 and will incorporate corporate lending and car finance.
Lloyds News Update
A spokesperson from Westpac said that the decision was built on a strategy that ensured the most sensible step for the company, financially speaking.
While this is Westpac’s most substantial deal since 2008 when it took over the St George Bank, they have insisted that regulatory approvals are unnecessary for the deal to be completed. The two companies have made plenty of noise about the sale with Westpac expressing their confidence in the company and the assistance that it can provide them with in terms of reaching their personal targets.
Lloyds’ responses reinforce the idea of focussing on the UK banking market but also that they were striving to provide a better value for their shareholders and ration their international presence – assets of which it has been gradually shaving off over the previous year.
In terms of the disposal of assets, Lloyds has just this year cut ties with its German life insurance business, struck a deal with Union Bancaire Privee to take over its international private banking segment and shifted its retail banking business based in Spain, Banco Sabadell.
Of course in relation to the role of Lloyds in the UK, they have sectioned off more than 600 branches to re-establish the brand they took over in the middle of the 1990s: TSB. Customers are being shared between the two banks in order to create a more balanced, fair market for UK based customers. TSB as a bank on its own, will be sold next year.
The government’s role in Lloyds currently totals 33% but last month sold on 6% of this share for a rather useful £3.2bn.
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