COMMERCIAL-IN-CONFIDENCE
that bid by 26 May at the latest. If (as seems likely) it is cleared by the Commission, Midland, its shareholders, and HSBC, are likely to expect an early decision on Lloyds.
THE PARTIES
4.
Both Lloyds and Midland are, of course, major UK clearing banks and are usually regarded as two of the "Big Four". Lloyds' main businesses comprise: retail banking- approximately 1900 branches in the UK holding some 6 million accounts; corporate banking and treasury services; leasing and trade finance; private banking; international banking (340 offices in 18 countries in Europe, Latin America, Australasia and the Far East); insurance and related financial products including estate agency (it owns 60 per cent of Lloyds Abbey Life); it also owns Lloyds Merchant Bank, whose main activities are corporate finance, development capital, investment management and stockbroking. Total assets (end 1991) were £51.3 billion, and the group employed 67,870 people. Group profits for 1991, before tax and after provisions, were £645 million.
5. Midland's main businesses comprise: retail banking- 1830 branches holding over six million accounts; leasing and instalment finance (Forward Trust group); and international and investment banking- Midland Montagu is a primary participant in the London foreign exchange and money markets, and Greenwell Montagu is a leading market maker in UK government bonds. Midland also provides corporate banking and a full range of personal financial services, including insurance (it is the majority shareholder in Midland Life, a joint venture with Commercial Union Assurance). Midland also owns travel agent/travellers cheque issuer Thomas Cook, although this business is managed purely as an investment. Total assets at end 1991 were £59 billion, when the group employed 57,640 people. Group profits for 1991 (pre-tax) were £36 million after provisions of £903m.
6.
HSBC is a major international banking group with offices in 55 countries. It is incorporated in England but at present resident in Hong Kong for tax purposes.
Its shares are listed on London and Hong Kong stock exchanges.
The main member of the group is Hongkong Bank, a leading international bank with particular strength in Asia; it is the largest financial institution incorporated in Hong Kong, where it also carries out some of the functions of a central bank. It has one of the ten largest foreign exchange and money market trading operations in the world. Other major group members are Marine Midland Bank (USA, the group's main commmercial bank), Hongkong Bank of Canada (seventh largest in the country), and the British Bank of the Middle East (largest overseas bank in the Gulf). HSBC's operations also include worldwide merchant banking, fund management, broking, corporate finance and treasury activities, mainly through its Wardley and James Capel subsidiaries. Total assets (end 1991) were £85.8 billion, and the group employed 53,770 people. Group profits
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COMMERCIAL-IN-CONFIDENCE
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