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HBOS takeover: Thousands of jobs could be at risk
THOUSANDS of Calderdale jobs were under threat today after Lloyds TSB confirmed a £12.2 billion takeover of the Halifax.
The merger creates a new banking giant with around a third of the mortgage and savings markets.
It will be headed by Lloyds TSB chairman Eric Daniels.
It has not yet been revealed where the HQ will be but analysts believe it will be moved from Scotland to London.
There was no announcement over the future of the Halifax's Trinity Road retail banking headquarters.
Dennis Stevenson, chairman of the Halifax, said: "This is the right transaction for HBOS and its shareholders."
Today it was understood that Prime Minister Gordon Brown has waived competition rules to allow the takeover to go ahead.
Both players are banking giants – Lloyds TSB is ranked fourth in the UK's financial sector and HBOS fifth.
Both employ between 60,000 to 70,000 and industry insiders say as many as 40,000 jobs nationwide could now be at risk, with potentially 1,000 branch closures.
Previous indicators pointing to a third of the combined work-force being axed have been recoreded in similar mergers.
HBOS employs 6,500 in Calderdale and decisions will have to be taken on where its main offices will be based.
Ged Nichols, general secretary of Accord, the largest union in the HBOS group, said the implications were greater than when the Halifax merged with the Bank of Scotland, which cost 6,000 jobs.
He based his fears on the fact Lloyds TSB had the upper hand and the talk was of a takeover rather than a merger. He is now seeking talks with bosses.
He said: "The implications are worse for jobs now. We are very worried.
"The deal may be reassuring for customers but they are extremely distressing for employees."
Financial analyst Rupert Fenton said HBOS was the weaker partner in the takeover.
"The Financial Services Authority said it was happy with the strength of HBOS on Wednesday, but then we heard about merger talks.
"It wouldn't be talking about a merger if it didn't have to."
He added: "Lloyds has largely avoided the toxic waste of the American mortgage market fallout the other banks have been hit by."
Steven Leigh, policy adviser at Mid Yorkshire Chamber of Commerce, which covers Calderdale, said the deal would help restore confidence in the UK banking sector.
He said suspension of competition laws by Gordon Brown was much needed. "This would not happen in normal circumstances – but these are not normal circumstances," he said.
An anxious wait for bank's workforce
Main points of takeover deal
Takeover clockwatch: Follow the developments
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Saturday 11 February 2012
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