Co-operative Bank ends cash machine deal with Co-op Group
The Co-operative Bank is ending a deal to supply cash machines to Co-op supermarkets after the Co-operative Group sold its cash-in-transit business to Cardtronics.
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The bank, which runs about 2,000 machines in Co-op supermarkets, will get £8.2m for the rest of the contract which was due to last until the end of next year.
Cardtronics will also pay the bank £6.4m for the cash machine hardware, although the bank, which has faced financial problems that brought it close to collapse last year, said the overall impact of the payments on its finances would be broadly neutral.
The bank's bondholders took control after a £1.5bn black hole was spotted in its accounts, in the wake of its failed attempt to buy 631 branches from Lloyds Banking Group.
The deal means Cardtronics will run all cash machines in Co-op supermarkets, which will remain part of the Link network and will stay free-to-use.