SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
19 January 2009
LLOYDS BANKING GROUP plc
(Translation of registrant's name into English)
5th Floor
25 Gresham Street
London
EC2V 7HN
United Kingdom
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports
under cover Form 20-F or Form 40-F.
Form 20-F..X..Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes .....No ..X..
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule
12g3-2(b): 82- ________
Index to Exhibits
Item
No. 1 Regulatory News Service
Announcement, dated 19 January 2009
re:
Acquisition
The Board of Lloyds Banking Group plc (the 'Group') is pleased
to announce the successful completion of the acquisition of HBOS plc (the
'Acquisition') creating the opportunity to become the leading UK financial services
group. The combination will also drive significant synergy benefits: the Group's
Board believes it will deliver total pre-tax annual cost savings greater than
£1.5 billion by the end of 2011.
The Board takes this opportunity to provide an update, on an
unaudited basis, on the recent trading of HBOS plc (HBOS) and Lloyds TSB Group plc
(Lloyds TSB) and the Group's expected capital position.
The Board confirms that Lloyds TSB has traded satisfactorily
since its update to the market in its Interim Management Statement on 3 November
2008 and its
subsequent market update on 12
December 2008. On 12 December 2008, HBOS issued a trading
update which highlighted increasingly difficult market conditions, an acceleration
in the deterioration in credit quality, further sharp falls in estimated asset
values and pressure on net interest margins due to significant reductions
in
UK
base rates. The Board understands from HBOS that although
the trends announced by HBOS continue there has been no significant change in
HBOS's trading position from that announced by HBOS in its trading
update.
The Group will announce preliminary results for HBOS and
Lloyds
Banking Group (formerly Lloyds
TSB Group) for the period ended 31 December 2008 on Friday 27
February 2009.
The Group
is pleased with the strong response it has received to
its offer to bond
holders
to exchange their upper tier 2 securities for new tier
1
capital
instruments. Securities with a nominal value of in excess of
£5
billion
have been
tendered and the Group
expects to accept offers in respect of approximately
£2
billion of these securities. It is expected that this exchange
will result in an increase
in the Group's Tier 1 capital ratio of approximately 35 basis
points
.
The Board estimates that the Group's Core tier 1 capital ratio
at 31 December 2008 will be within our previously announced target range of between
6-7 per cent. This is derived from unaudited information, includes HBOS, and is
adjusted for the completion of the recent capital raisings, the previously reported
initial fair value work and the regulatory capital benefit of fair valuing, on
acquisition, HBOS's own debt. On the same basis the Group's Tier 1 capital ratio is
estimated to be in the range of 9-10 per cent.
Michael
Oliver
+44 (0) 20 7356 2167
Director of Investor Relations
Email:
michael.oliver@ltsb-finance.co.uk
Douglas Radcliffe
+44 (0) 20 7356 1571
Senior Manager, Investor Relations
Email:
douglas.radcliffe@ltsb-finance.co.uk
Shane O'Riordain
+44 (0) 20 7356 1849
Group Communications Director
E-mail: shane.o'riordain@lloydsbanking.com
Leigh Calder
+44
(0) 20 7356 1347
Senior Manager, Media Relations
E-mail:
leigh.calder@lloydstsb.co.uk
FORWARD LOOKING STATEMENTS
This announcement contains forward looking statements with
respect to the business, strategy and plans of the Lloyds TSB Group, its
current goals and expectations relating to its future financial condition and
performance. By their nature, forward looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future. The Group's actual future results may differ materially from
the results expressed or implied in these forward looking statements as a result of
a variety of factors, including UK domestic and global economic and business
conditions, risks concerning borrower credit quality, market related risks such as
interest rate risk and exchange rate risk in its banking business and equity risk
in its insurance businesses, changing demographic trends, unexpected changes to
regulation, the policies and actions of governmental and regulatory authorities in
the UK or jurisdictions outside the UK, including other European countries and the
US, exposure to legal proceedings or complaints, changes in customer preferences,
competition and other factors. Please refer to the latest Annual Report on Form
20-F filed with the US Securities and Exchange Commission for a discussion of such
factors. The forward looking statements contained in this announcement are made as
at the date of this announcement, and the Group undertakes no obligation to update
any of its forward looking statements.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
LLOYDS BANKING GROUP plc
(Registrant)
By: M D Oliver
Name: M D Oliver
Title: Director of Investor Relations
Date: 19 January 2009