LONDON - Lloyds Bank PLC said it was withdrawing its proposed bid for Midland Bank PLC in the face of the increased bid by HSBC Holdings PLC and regulatory delays. The move cleared the way for HSBC to acquire Midland.

Following a meeting Friday of the Lloyds board, the bank issued a statement saying it "continues to believe that a merger of Lloyds Bank and Midland Bank would have created substantial benefits and would have offered a unique opportunity to reshape British banking for the better.

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