Axe looms over Abbey's branches

Helen Dunne|Mail13 April 2012

FEARS that hundreds of Abbey bank branches could close were fuelled this weekend after it was discovered that more than 70% of its outlets are within a quarter-mile of those owned by rival HBoS.

The overlap suggests that many of Abbey's 741 branches could be under threat if, as expected, HBoS launches a takeover bid next month.

HBoS's likely intervention is expected to spark a bidding battle for Abbey, throwing its agreed £8.3 billion deal with Spain's Banco Santander into doubt.

A combination of Abbey and HBoS would have 40 million customers, be responsible for one in three UK mortgages, have a 29% share of the savings market and a 20% share of current accounts.

It is likely that any move by HBoS would be referred to the Competition Commission, though the bank has privately indicated that it cannot see any issues that would lead to a takeover deal being blocked. Other competition experts disagree.

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