Decision Nº M/08/036 from Competition and Consumer Protection Commission, 2008-12-17

• Jurisdiction: Ireland
• Parties: HBOS plc,Lloyds TSB Group plc
• Date: 17 December 2008
• Decision Date: 17 December 2008
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Number: M/08/036

DETERMINATION OF MERGER NOTIFICATION M/08/036 -

LLOYDS TSB / HBOS

Section 21 of the Competition Act 2002

Proposed acquisition by Lloyds TSB Group plc of HBOS plc

Dated 17/12/08

Introduction

1. On 21 November 2008, the Competiti on Authority (“the Authority”), in

accordance with section 18(1) of the Competition Act 2002 (“the Act”),

was notified, on a mandatory basis, of a proposal (“proposed

transaction”) whereby Lloyds T SB Group plc (“Lloyds T SB”) would

acquire sole control of HBOS plc (“HBOS”).

The Undertakings Involved

The Acquirer

2. Lloyds TSB is a financial services group which prov ides banking and

financial services in the UK, the State and elsewhere in the world.

Lloyds TSB activities are organised into three divisions: UK Retail

Banking; Insurance and Investments; and, Wholesale and

International Banking.

3. In the State, Lloyds TSB carries out the fo llowing activities:

• Invoice discounting services through Lloyds TSB Commercial

Finance Ltd (“Commercial Finance Ireland”), a wholly-owned

subsidiary of Lloyds TSB. These services to customers in the

State are provided from the UK operations of Lloyds TSB.

• Management of four cash funds and one private equity fund

registered in Ireland.

The Target

4. HBOS is a diversified financial services group engaged in a range of

banking, insurance broking, financial services and finance-related

activities throughout the UK, the State and elsewhere in the world.

5. In the State, HBOS is active through Bank of Scotland (Ireland )

Limited (“BOSI”) which provides personal and corporate b anking

services. In addition, HBOS has an insurance business in Ireland,

which mainly provides captive (i.e., in-house) i nsurance.

6. BOSI operates under two brands: Halifax and Bank of Scotland

(Ireland):

• The Halifax brand provides personal banking services such as

mortgages, loans, savings, credit cards, current accounts and