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European Commission approves restructuring plan of Lloyds Banking Group

On 18 November 2009, the European Commission approved the restructuring plan of Lloyds Banking Group (LBG). The plan addressed the financial support package of £17bn received in October 2008 (which effectively gave the state a 43.5% stake in LBG) and additional state aid measures. The Commission assessed the past and new state aid on the basis of the Commission's Communication on restructurings in the financial sector in the current crisis. In its assessment, the Commission found that the plan ensures a fair burden sharing of past losses and that the bank makes a significant contribution to the financing of the restructuring costs. As part of the agreement with the Commission, the plan contained a divestment package in LBG's retail banking as a measure to limit potential distortions of competition created by the aid. The divested entity would have a 4.6% share of UK personal accounts through a network of at least 600 branches. A CRA team including Alan Overd and Vicki Mertzanidou advised LBG in the proceedings.

See Commission Press Release for further details.

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