Lloyds Banking Group agrees terms to sell branches - 13 WTHR Indianapolis

Lloyds Banking Group agrees terms to sell branches

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LONDON -

Lloyds Banking Group says it has reached a preliminary agreement to sell 632 branches to the Co-operative Group.

Lloyds was ordered to dispose of part of its branch network to comply with the European Commission's terms for receiving a government bailout.

Lloyds said Thursday that the non-binding 'heads of agreement' negotiated with the Co-op call for an initial payment of 350 million pounds ($548 million) for the branches, with additional payments taking the total to 750 million pounds.

The deal would secure Co-op's position as a major player in the U.K. banking market, with 10 percent of the branches.

Lloyds says it aims to complete the disposal by the end of November next year.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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