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Image copyright Getty Images Image caption The move comes after the country’s second largest bank saw its shares fall by 7.5%

Barclays has agreed to buy a majority stake in Lloyds TSB for £2 billion from UK lender Nationwide in a deal which will make the bank the third largest in Britain after Lloyds and RBS.

The deal is worth around £15bn with shareholders to receive shares worth around 10p.

Barclays chief executive Antony Jenkins said it “opens up an exciting new world” for the lender.

Lloyds and RBS are both in talks to split.

Barclays and Lloyds TSB are in discussions about creating a separate commercial banking arm and will seek to split the business so that Lloyds TSB no longer holds a percentage in Barclays.

The shares in Lloyds TSB have fallen by almost 11% in the past 12 months and the bank, which is part owned by the government, saw a 7.5% fall in its share price in 2013 after the taxpayer bailed out RBS in 2011.

Barclays said in a statement: “Barclays is pleased to make an investment in Lloyds TSB, one of the UK’s largest commercial banks with a strong commercial banking footprint, with a strong culture of serving customers and a successful business.

“Barclays has the experience and capabilities to support Lloyds TSB at its growth and long-term growth in retail, commercial and wealth sector.”

It adds: “Barclays will continue to lead the market in the provision of corporate banking services, with the creation of a significant commercial banking business on which Lloyds TSB will remain the majority shareholder.”

Barclays also plans to merge its retail wealth, brokerage division and banking business.

‘Biggest bank in the UK’

Barclays is one of 13 banks in the top

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