The Secretary of State for Business and Enterprise John Hutton today announced his intention to issue an intervention notice in the proposed merger of HBOS and Lloyds TSB on public interest grounds to ensure the stability of the UK financial system.
Under Section 42 of the Enterprise Act 2002 the Secretary of State can extend public interest grounds. The Secretary of State will lay the necessary affirmative Order in Parliament when the House returns after Summer recess. Currently public interest grounds cover only plurality of media ownership and national security. His decision follows advice from the UK Tripartite Authorities (HM Treasury, Bank of England and the Financial Services Authority).
