CVC Joins JC Flowers in Bid for UK Bank Aldermore Amid Banking Consolidation
Private Equity Interest and the Future of Aldermore
By Amy-Jo Crowley
Background on the Bid
LONDON, Sept 14 (Reuters) - Private equity group CVC has joined forces with JC Flowers on a bid for FirstRand's UK bank arm Aldermore, two people familiar with the matter said.
FirstRand’s Exit Strategy
The South African lender said in April it planned to exit from its small specialist British bank blaming a costly UK motor finance redress scheme, as it raised provisions for mis-sold motor loans to £750 million ($1.01 billion).
Details of the Sale Process
Timeline and Interested Parties
• Aldermore’s owner FirstRand has asked prospective buyers to submit non-binding offers on Tuesday, two of the people said.
• FirstRand, Aldermore and CVC declined to comment. JC Flowers did not respond to a request for comment.
Other Potential Bidders
• British bank NatWest, Centerbridge and Warburg Pincus are also potential bidders for the unit that was first acquired by FirstRand in 2017, one of the people said. NatWest, Warburg Pincus and Centerbridge declined to comment.
• Other potential bidders were expected to include the UK's Metro Bank and Lloyds, Sky News previously reported.
Market Context and Valuation
Banking Sector Consolidation
• The discussions further show how Britain's specialist and mid-sized banks, which have struggled in recent years to compete with larger incumbents, are undergoing consolidation. Examples include Nationwide's £2.9 billion purchase of Virgin Money in 2024 and Santander's takeover of TSB in 2025.
Aldermore’s Valuation
• FirstRand said last week that it expected non-binding offers for the unit to be submitted by the end of this month.
• Analysts at RBC this month estimated Aldermore's valuation at £1.35 billion excluding its motor finance business, or £1.45 billion when including that business.
($1 = 0.7417 pounds)
(Reporting by Amy-Jo Crowley and Lawrence White in London. Editing by Anousha Sakoui and Tomasz Janowski)
