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There is uncertainty over what will happen to Lloyds TSB's 200 branches in Scotland when its government-brokered takeover of HBOS, which owns Halifax, goes through next month.
The combined bank will use only the Bank of Scotland brand on the high street in Scotland, which means the 200 branches displaying the Lloyds black horse will have to be rebranded, shut or replaced by an existing BoS branch.
The takeover, which is expected to give the taxpayer a stake of more than 40% in the enlarged group, has caused controversy, particularly in Scotland. But giving the BoS brand such prominence on the high street may help to allay some local fears.
Brokered by the prime minister, Gordon Brown, to try to prevent HBOS from collapsing, the deal faces a challenge next Monday and Tuesday at the competition appeal tribunal (CAT) in a case brought by Scottish businessmen. They will argue that the move should not have been cleared by the competition authorities.
The consumer organisation Which? threw its weight yesterday behind the appeal by writing to Sir Gerald Barling QC, president of CAT, to raise concerns about the government's handling of the deal. In brokering the takeover, the prime minister agreed to allow all previous competition rules to be overturned.
Peter Vicary-Smith, chief executive of Which?, said: "The organisation is worried that, if the merger goes ahead, it could set a precedent and have serious consequences for fair competition and the interests of consumers at large.
"We consider that the concerns this raises affects consumers across the UK, not just those in Scotland."
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