BANCO SABADELL has bought out Britain’s Lloyds bank’s Spanish retail banking activities in a €100 million deal. Lloyds will get up to €20 million cash over five years plus a 1.8 per cent stake in Sabadell worth about €84 million.
The deal includes Lloyd’s retail and private banking business and its investment management business in Spain. But the British group’s corporate banking operations, which serve business clients, are not included. They will carry on operating as normal.
Lloyds is still 39 per cent owned by the British government after a state bailout after the 2008 global financial crisis. It will not be a done deal until state approval has been given to ensure statutory requirements are met.