01 December 2008

The Merger Action Group is contesting the government's decision to allow the merger of HBOS with Lloyds TSB to go ahead.

A complaint has been lodged against the government with the Competition Appeal Tribunal concerning the takeover of HBOS by Lloyds TSB.

According to a group of businessmen, the decision by the business secretary, Peter Mandelson, to allow the merger to take place without consulting the Competition Commission was "unlawful".

Spokesman for the Merger Action Group (Mag) Malcolm Fraser explained that the law should be adhered to.

"We are extremely concerned that due legal process has been ignored. In Scotland, particularly, there is a widespread and growing unease about what has taken place," he said.

Mag is calling for the hearing, if one is to take place, to be held in Scotland

However, Lloyds TSB responded to the government announcement on October 31st that the merger could take place by noting the Office of Fair Trading's acknowledgement that most third parties believe the move will stabilise the economy and is therefore in the public's best interest.