Until now, the Uruguayan retail, commercial and banking operations were conducted through a branch of Lloyds TSB Bank PLC, which is 41% owned by the U.K. Government. The total assets subject to the transaction total 261 million pounds as of Dec. 31, 2011. Lloyds Group's representative office in Uruguay is not included within the transaction.
The transaction is in line with Lloyd's strategy of reducing its international presence and its effect on the group’s operations is not expected to be material. The deal is subject to a number of conditions, including regulatory approval, and is expected to be completed in 2013.
Diego Rodríguez, Partner at FERRERE who led the team that assisted Lloyds throughout the sale process, comments: “It was a long competitive process with several bidders that were interested in buying the business. The sale will be done as a universal transfer of assets and liabilities to the Uruguayan subsidiary of Banque Heritage. Now that the agreement was signed, regulatory approval should be obtained from the Central Bank of Uruguay for closing. We expect this authorization to be obtained in 2013”.