Lloyds to sell branches to Co-op: what it means for you

The assets to be sold account for a 4.6% share of the UK current account market and up to 19% of the group's mortgage book. It includes five million customers and an estimated 9,000 employees.

Lloyds – which includes Lloyds TSB, Cheltenham & Gloucester (C&G), Halifax and Bank of Scotland (Hbos) – has until November 2013 to complete the sale.

Which branches will be sold?

Lloyds will sell 164 C&G branches, all 185 Scottish Lloyds TSB branches and 283 Lloyds TSB branches in England and Wales.

See the Lloyds branches link for which hubs will be sold.

What happens to customers of those branches?

Lloyds says: "In theory, these customers would potentially be transferred."

However, Lloyds is still in talks about the finer detail and doesn't have any further information. Whether customers switch to Co-op may also depend on what product they hold.

Lloyds aims to close the deal, and much of the detail, in spring 2012.

Why is Lloyds making the sale?

The government-backed bank is being forced to off-load the branches under European competition rules due to its sheer size. Lloyds Banking Group was formed in 2009 after Lloyds TSB bought struggling Hbos.

Lloyds will now enter into exclusive discussions with the Co-op, which beat off competition from NBNK Investments, a takeover vehicle run by former Northern Rock boss Gary Hoffman.