UK's 'big four' banks back travel firm merger

20 October 2011

The big four in the British banking industry are supporting a proposed joint venture between two corporate travel firms.

That is according to a report in the Daily Telegraph today (20 October), which revealed that the £2.5 billion equity fund established by Barclays, HSBC, Royal Bank of Scotland (RBS) and Lloyds Banking Group is supporting a move by Statesman Travel Group to acquire Commodore Corporate Travel.

Lloyds - which, along with RBS, recently had its credit rating cut to A from AA-minus by Fitch - and an investment figure from the Business Growth Fund will provide the necessary funding for the deal to be completed.

Following the merger, it is expected that the equity fund will have a seat on the organisation's management board and a "significant minority stake".

This will form part of the banking group's target of making around up to 40 noteworthy investments every year.

By Asim Shah

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