Lloyds Banking reaches agreement to sell 632 branches to Co-operative Group


LONDON — Lloyds Banking Group said Thursday 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.

The non-binding `heads of agreement’ negotiated with the Co-op call for an initial payment of 350 million pounds (US$548 million) for the branches, with additional payments taking the total to 750 million pounds based on the Co-op bank’s performance through 2027, Lloyds said.