§ Mr. RiddickTo ask the Chancellor of the Duchy of Lancaster what further progress has been made in finding a suitable buyer for Girobank.
§ Mr. NewtonAfter detailed discussion with a number of interested parties, the Post Office board has decided to accept the conditional offer made by the Alliance and Leicester building society to purchase Girobank plc. I have endorsed this decision which I am satisfied takes full account of the factors for the sale set out by myself-and my predecessor.
I understand that the Alliance and Leicester's conditional offer to the Post Office is to acquire the equity and subordinated debt of Girobank for £130 million subject to completion adjustments. The Post Office will now enter into detailed negotiations with the Alliance and Leicester with a view to completion as soon as practicable within the coming weeks. My consent will be required before the final sale can take place.
In addition, the requirements of the relevant competition legislation will need to be satisfied and the agreement of the Bank of England will be needed to the operation of the bank under a new owner. If the negotiations are successful the Alliance and Leicester will also need to satisfy the Building Societies Commission before the sale is completed.