Lloyds Banking Group Plc (LYG, LLOY.L), in its update on its EC mandated disposal, said the Co-operative Group's board has decided that they can no longer proceed with a purchase of the Verde business given their view of "the impact of the current economic environment, the worsened outlook for economic growth and the increasing regulatory requirements on the financial services sector in general."
Therefore, Lloyds Banking Group now plans to divest Verde through an Initial Public Offering or IPO, having maintained this option throughout the process to ensure best value for its shareholders and certainty for its customers and colleagues.
According to the company, detailed plans are in place for a rebranding of the business as TSB which would be visible on the High Street in the summer of this year, at which point the TSB Bank (Verde) would operate as a separate business within the Group.
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