Lloyds TSB takes over Halifax Bank of Scotland (HBOS)

The British bank and insurance company, Halifax Bank of Scotland (HBOS), which was created by the merger of Halifax and bank of Scotland, is now taken over by Lloyds TSB, one of the biggest UK banks. HBOS is the biggest home loan lender in UK and got affected by the credit crunch of sub-prime mortgage business in US.

Lloyds TSB and HBOS were rivals in UK. Lloyds’ takeover deal was settled at 232 pence per share. With this deal Lloyds will become Britain’s third-largest bank behind Royal Bank of Scotland and HSBC.

It’s expected that more than 40,000 jobs could be lost because of this deal. The combined employee strength of these two companies are 145,000. Hundreds of branches could be shut down.

The share price of HBOS plummeted by 55% within three trading sessions of this week on the news of take over. The market share of these two companies in retail banking and mortgage sections is more than 30%.

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September 18, 2008 | Filed Under Market Analysis 

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