UK's Metro Bank eyes $2.7 billion merger with Aldermore, Sky News reports
Metro Bank's Potential Merger with Aldermore: Key Details and Background
July 21 (Reuters) - 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.
Details of the Potential Merger
Here are some more details:
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Metro Bank's Interest in Aldermore
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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Other Potential Bidders
Sky News had previously reported that Lloyds Banking Group and Shawbrook were also exploring a potential takeover of Aldermore.
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FirstRand's Exit from Aldermore
Impact of Motor Finance Mis-Selling Scandal
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.
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FirstRand's Acquisition History
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.
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Comments from Involved Parties
Metro Bank declined to comment on the report. Aldermore and FirtRand did not immediately respond to requests for comment.
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Market Reaction
Metro Bank shares were up 2% at 174.2 pence as of 1107 GMT.
Additional Information
($1 = £0.7448)
(Reporting by Neeshita Beura and Anushka Chourasia in Bengaluru; Editing by Devika Syamnath)
