NBNK's bid to buy 632 branches from Lloyds Banking Group and create a major competitor to Britain's established high street lenders has got approval from the Financial Services Authority.
The fledgling bank said talks with Lloyds on the sale had "progressed positively" and that the regulator had confirmed it was satisfied with its plans should it be successful in acquiring the branches.
The statement from NBNK on Friday comes after the bank in April submitted a fresh bid for the so-called Project Verde business being sold by Lloyds.
The new offer came as it emerged that the Co-op, which was granted exclusivity in the race to buy the branches late last year, was struggling to get FSA approval to complete the deal.
NBNK was founded by former Lloyd's of London chairman, Lord Levene, and is run by Gary Hoffman, the former chief executive of Northern Rock.
In the statement NBNK said it had "answered a number of questions" from the FSA about its bid for the branches following its renewed offer for the business and that the regulator had confirmed it was happy with its responses.
"Having continued to engage constructively with Lloyds, I believe we have provided sufficient information to enable negotiations to progress for the sale of Verde to NBNK," said Mr Hoffman.
Antonio Horta-Osorio, chief executive of Lloyds, last month said the lender was looking to get assurances from NBNK that its bid would not face regulatory problems.
Despite losing its exclusive bidder status, the Co-op remains the preferred buyer of the branches and last month submitted a revised offer for the Verde business to the FSA in an attempt to gain final approval for the takeover.
Lloyds has also continued to prepare the business for a stock market listing in the event that neither of the offers match its expectations.
The bank is looking to sell the branches for at least £1.5bn and could float the business if it felt this offered the best chance to make a return for shareholders.
telegraph.co.uk
The fledgling bank said talks with Lloyds on the sale had "progressed positively" and that the regulator had confirmed it was satisfied with its plans should it be successful in acquiring the branches.
The statement from NBNK on Friday comes after the bank in April submitted a fresh bid for the so-called Project Verde business being sold by Lloyds.
The new offer came as it emerged that the Co-op, which was granted exclusivity in the race to buy the branches late last year, was struggling to get FSA approval to complete the deal.
NBNK was founded by former Lloyd's of London chairman, Lord Levene, and is run by Gary Hoffman, the former chief executive of Northern Rock.
In the statement NBNK said it had "answered a number of questions" from the FSA about its bid for the branches following its renewed offer for the business and that the regulator had confirmed it was happy with its responses.
"Having continued to engage constructively with Lloyds, I believe we have provided sufficient information to enable negotiations to progress for the sale of Verde to NBNK," said Mr Hoffman.
Antonio Horta-Osorio, chief executive of Lloyds, last month said the lender was looking to get assurances from NBNK that its bid would not face regulatory problems.
Despite losing its exclusive bidder status, the Co-op remains the preferred buyer of the branches and last month submitted a revised offer for the Verde business to the FSA in an attempt to gain final approval for the takeover.
Lloyds has also continued to prepare the business for a stock market listing in the event that neither of the offers match its expectations.
The bank is looking to sell the branches for at least £1.5bn and could float the business if it felt this offered the best chance to make a return for shareholders.
telegraph.co.uk
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