MIDLAND/LLOYDS: Q AND A BRIEFING FOLLOWING REFERENCE TO MMC
Q1.
A1.
Q2.
A2.
Q3.
A3.
Q5.
A5.
Q6.
A6.
Q7.
A7.
How long will the MMC take to consider the merger proposal?
The President of the Board of Trade has asked the MMC to submit its report by 25 August. MMC reports are usually published and decisions on them announced within 4-6 weeks of their being submitted.
Surely the reference to the MMC effectively kills off Lloyds' chances of acquiring Midland?
It is open to shareholders of Midland to await the outcome of the investigation before deciding, if the Lloyds offer is permitted to proceed, whether to accept it.
What concerns have been identified to warrant referral to the MMC?
The possible offer raises concerns in several markets where Lloyds' and Midland's businesses overlap, including in relation to lending to small businesses.
Surely the bid by Lloyds should be allowed to proceed in order to create a British bank of sufficient stature to compete internationally or in order to provide a more effective rival to Barclays and Nat West?
Not appropriate to comment. Arguments about the benefits arising from the merger will be weighed by the MMC against the competition concerns in reaching their overall findings.
Will the MMC be confined to examining competition issues identified by the DGFT?
No.
The MMC is required to take into account all matters which may be relevant in determining whether the bid may operate against the public interest.
Why were Lloyds not allowed to divest assets in lieu of being referred to the MMC?
The Director General advised and the President accepted that the appropriate course is a reference.
Can I make representations to the MMC?
Q8.
A8.
Yes.
JA5.44
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