The blocking of Lloyds TSB's proposed £19bn (€31bn) bid for Abbey National will make consolidation in the UK banking market very difficult for any of the big four domestic banks, according to investment bankers.
The UK's secretary of state for trade and industry refused to allow the merger on competition grounds. A banker close to the proposed deal said: "This has been expected for some time. You'll now see Lloyds TSB focusing on potential acquisitions - or a merger - on the European continent or in the US. None of the big four will be looking for deals within the UK now."
