This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7702809.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Lloyds TSB's HBOS deal is cleared | Lloyds TSB's HBOS deal is cleared |
| (10 minutes later) | |
| Business Secretary Lord Mandelson has cleared the planned merger between Lloyds TSB and HBOS after ruling the deal was in the public interest. | Business Secretary Lord Mandelson has cleared the planned merger between Lloyds TSB and HBOS after ruling the deal was in the public interest. |
| "Preserving the stability of the financial system" outweighed any potential anti-competitive effects, he said in a statement. | "Preserving the stability of the financial system" outweighed any potential anti-competitive effects, he said in a statement. |
| There was no need to refer the deal to the Competition Commission, he added. | There was no need to refer the deal to the Competition Commission, he added. |
| The Office of Fair Trading had reported that competition could be affected by the planned merger. | The Office of Fair Trading had reported that competition could be affected by the planned merger. |
| The tie-up between the two institutions will create a bank which will control about 25% of British customers' personal bank accounts and about 28% of the mortgage market - which would normally have raised competition concerns. | |
| But the British government has relaxed the competition rules, in the interest of maintaining the stability of the British banking system. | |
| Bail-out | |
| In its report last week, on the impact of the deal on competition in the UK banking sector, the Office of Fair Trading said there could be a "substantial lessening of competition" in personal current accounts, bank services for smaller firms and the mortgage market. | |
| In his statement, Lord Mandelson said: "I recognise that there are some concerns about the possible effects of the merger on competition. | |
| "I am asking the Office of Fair Trading to continue to keep the relevant markets under review in order to protect the interests of UK consumers and the British economy," he added. | |
| Earlier, Prime Minister Gordon Brown said HBOS would not exist, had it not been for the public bail-out of the bank. | Earlier, Prime Minister Gordon Brown said HBOS would not exist, had it not been for the public bail-out of the bank. |
| "We were faced with a situation where the Halifax Bank of Scotland was collapsing, where they could not continue to function. And we helped make possible the only bid that was available at that time, [from] Lloyds TSB," he said. | "We were faced with a situation where the Halifax Bank of Scotland was collapsing, where they could not continue to function. And we helped make possible the only bid that was available at that time, [from] Lloyds TSB," he said. |
| Mr Brown said he was "absolutely sure" that without the government's rescue, "HBOS would not exist". | |
| Lloyds has said it expects to complete its takeover of HBOS by January, after shareholders vote on the deal in November. |