UK bank Lloyds to buy HBOS

Sep 18 - Lloyds TSB seals a 12.2 billion pound ($21.7 billion) deal to buy Halifax Bank of Scotland.

In a move that has been welcomed by the British Prime Minister and the the Bank of England, the UK's sixth largest bank, HBOS, is merging with Lloyds TSB to form the UK's biggest active asset manager.

The two companies will create a 28 billion pound (50 billion dollars) mortgage company.

Lloyds investors will own 56 percent of the enlarged group, and it will be led by Lloyds Chairman Sir Victor Blank and Chief Executive Eric Daniels.

Basmah Fahim reports.