Co-op set to revamp board in bid to secure Lloyds branch buyout

THE Co-operative’s board faces an overhaul ahead of its purchase of 630 Lloyds bank branches as the Financial Services Authority (FSA) is believed to have concerns over whether the group can handle the acquisition.

A person close to the negotiations told City A.M. he would not be surprised if the Co-op revamped its governance to appease the FSA’s concerns.

As a mutual, the Co-op’s board is made up of members rather than business directors. Chaired by Len Wardle, the board has 19 seats and includes a nurse and a university tutor.

Paul Flowers, the banking division’s chair, is a Methodist minister and Bradford city councillor.

The acquisition of the Lloyds’ branches would triple the size of the Co-op’s banking division, which currently has about 340 branches.

Lloyds is due to update the market on the deal at the end of this month.