The Co-operative Group Friday said it will submit a non-binding bid for the retail branch network being sold by Lloyds Banking Group PLC (LYG).

The offer comes over a month after rival NBNK Investments PLC (NBNK.LN) tabled its offer of GBP1.5 billion for the business.

The Co-op didn't disclose financial details of its offer but reports suggest that it will be frontrunner for the 630-strong network. The bid will be submitted next week and the Co-op said the offer was part of its strategy to grow its retail banking business.

"We have a clear strategy for driving The Co-operative Group forwards," said Peter Marks, Group Chief Executive of The Co-operative Group.

"As part of this we remain interested in the Lloyds Banking Group's branch assets as we believe this would support our moves to grow our relationship banking business in the UK.," he added.

The only other potential buyer is Sun Capital, which remains in talks with Lloyds and recently recruited former Lloyds Banking Group executive Carol Sergeant to join the board of the new lender that will be formed from the sale of the demerged network.

It remains unclear whether Sun Capital will submit a bid--the firm remains concerned about the cost of the systems base that will be on top of any offer for the business.

J.P. Morgan Chase & Co. (JPM) and Citigroup Inc. (C) are running the auction.

-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com

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