Shawbrook Makes Offer for Co-op Bank and Eyes Fresh Metro Bank Bid
Shawbrook Makes Move for Co-op Bank: British specialist lender Shawbrook, supported by private equity groups BC Partners and Pollen Street, has recently submitted an indicative bid for Co-op Bank, according to anonymous sources. This potential acquisition would provide Shawbrook with increased scale and access to current deposit accounts, which serve as a more cost-effective funding source for its loans than savings.
Shawbrook Considers Another Bid for Metro Bank: Shawbrook is also reportedly contemplating a fresh offer for London-listed Metro Bank. After several failed attempts earlier this year, Shawbrook aims to solidify its position by potentially acquiring Metro Bank. However, it is important to note that there is no certainty regarding the outcome of this bid.
Metro Bank’s Struggles: Metro Bank’s shares have experienced a significant decline following the revelation that the bank had enlisted advisors to strengthen its balance sheet. The bank failed to secure crucial capital relief from banking regulators, prompting its exploration of options to raise up to £600 million ($734.28 million) through equity and debt injections as well as asset sales.
PRA Seeks Solution for Metro Bank: Over the weekend, the Prudential Regulation Authority (PRA) has been reaching out to potential buyers in hopes of finding a resolution for Metro Bank’s challenges before the markets open on Monday morning.
Shawbrook’s Intentions: Shawbrook’s pursuit of both Co-op Bank and Metro Bank reflects its ambition to expand its presence and capitalize on the benefits of larger scale operations. If successful, these acquisitions would provide Shawbrook with enhanced capabilities and access to a broader customer base.
Co-op Bank Deadline: It was previously reported that Co-op Bank’s owners had set an early October deadline for potential suitors.
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Keywords: Shawbrook, Co-op Bank, Metro Bank, acquisition, bid, specialist lender, private equity, capital relief, balance sheet, Prudential Regulation Authority, expansion, consolidation
