Britain’s Metro Bank is exploring a £2 billion ($2.7 billion) merger with rival lender Aldermore, which was put up for sale by South Africa’s FirstRand following the motor finance mis-selling scandal, Sky News reported on Tuesday.
Here are some more details:
- Metro Bank is at the early stages of exploring a formal offer for Aldermore, according to the report, and is among a number of parties mulling an offer for the UK-based mortgage and business lender.
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Sky News had previously reported that Lloyds Banking Group and Shawbrook were also exploring a potential takeover of Aldermore.
- In April, FirstRand said it will exit Aldermore, after costly payouts tied to a UK motor finance mis-selling scandal forced it to hike provisions to £750 million.
- FirstRand acquired Aldermore in 2017 for £1.1 billion to diversify its revenue beyond its home continent and complement its British motor finance business, MotoNovo.
- Metro Bank declined to comment on the report. Aldermore and FirstRand did not immediately respond to requests for comment.
- Metro Bank shares were up 2% at 174.2 pence as of 1107 GMT.
