Specialist lender Shawbrook reportedly mulling Co-operative Bank merger
UK-based SME lender Shawbrook Group is reportedly mulling a £3.5 billion merger with the Co-operative Bank, according to Sky News.
Shawbrook reportedly plots merger with the Co-operative Bank
Sky News reports that sources have given the indication that Shawbrook, which offers lending and savings products to SMEs, consumers and real estate investors, has reached out to the owners of the Co-operative Bank and has made contact with Barclays to advise on a potential deal.
Since splitting from the Co-operative Group in 2020, Manchester-headquartered Co-operative Bank has reportedly been contemplating the idea of a sale for some time, with sources telling Reuters earlier this year that the bank was also considering potential mergers, acquisitions and an initial public offering (IPO).
The bank previously discussed a merger with rival lender TSB in 2021, but the approach was later rejected by its owner Sabadell Group. Then in March of this year, Sky News reported the bank’s talks to buy the mortgage loan books of Sainsbury’s Bank for £650 million also fell through after a failure to agree on price.
Shawbrook has declined to comment on the situation.
