LONDON — Shares in independent ATM operator Cardpoint were suspended on May 18 while the company negotiates the acquisition of 800 ATMs from HBOS
According to a Finextra News report, the banking group -- formed from the merger of Halifax and Bank of Scotland -- has confirmed that it is negotiating a £40 million (U.S. $71.2 million) deal with an independent operator to divest a quarter of the machines in its national fleet of 3,500 ATMs.
"Cardpoint confirms that it has entered into an exclusive agreement with HBOS in connection with the acquisition and that negotiations are at advanced stage," the company said in a statement.
Cardpoint said the HBOS deal will be structured as a reverse takeover and funded through a placing. If successful, it would raise the number of machines in Cardpoint's fleet to just over 2,800. Cardpoint would become the country's second largest ATM operator after Hanco ATM Systems, which manages some 4,000 machines.
All of the machines are in non-branch locations, including shops and garage forecourts. HBOS said it was willing to sell ATMs in these "remote" locations because of the high costs involved in maintaining machines and transporting cash to them.
The Consumers Association (CA) has slammed the bank's move to sell the machines, which it says may result in more bank customers paying user fees to access their cash.
"Customers stand to lose out." said a CA spokesman. "At the moment, HBOS does not charge customers to use ATMs. With this, it is likely to change. It could be as much as £1.50 to £2. If customers do not have access to a branch, then it will be detrimental because they will not have a choice."
Sainsbury's Bank has already sought to capitalize on the news, announcing plans to add 235 ATMs to its national network while issuing warnings about the rising numbers of fee-charging ATMs. (See related story Sainsbury's grows UK ATM network, expresses concern over surcharges)
