Mandelson clears Lloyds merger with HBOS

Oct 31 2008

Business Secretary says deal is in the public interest

The Government has given the green light to the planned merger between Lloyds TSB's and HBOS.

Business secretary Peter Mandelson overruled competition concerns raised by the Office of Fair Trading.

He said the public interest of "preserving the stability of the financial system" outweighed any potential anti-competitive effects.

The OFT said in a report submitted to the Secretary of State the banking tie-up risked lessening competition in personal current accounts, banking services for small businesses and the mortgage market.