LLOYDS TSB has agreed to buy a portfolio of loans worth £1.5bn.

The purchase, from Danske Bank, of Denmark, includes loans to 110 UK companies, 40 of which had no previous contracts with Lloyds.

Although the bank did not put a price on the deal, it is believed to have paid more than £2.5bn.

Lloyds said the deal was a perfect fit with its wholesale banking strategy as it would allow it to deepen relationships with existing customers and acquire important new clients.

It said: "This transaction is not just about acquiring a portfolio of assets, it is about taking the ongoing relationships and continuing to strengthen the growth within our wholesale business."

Cash already drawn on the loans amounts to £1.5bn, but the total that companies can withdraw is higher.

Danske bank, which serves nearly three million retail customers in Denmark, Norway and Sweden, said the portfolio did not fit in with its core strategy.