Shawbrook Group, a small business lending firm supported by private equity entities such as BC Partners and Pollen Street Capital, is currently strategising a substantial £3.5 billion fusion with Co-operative Bank. This prospective merger holds significance as one of the most notable banking transactions in the UK since the 2008 financial downturn, as stated in a report by The Telegraph.
Recent developments indicate that Shawbrook Group has engaged in discussions with Co-operative Bank’s proprietors in recent weeks, presenting a proposal for a merger based on stock integration for both entities.
It has been reported that the expertise of Barclays has been enlisted to offer guidance on this proposition, with an estimated valuation of approximately £800 million for Co-operative Bank.
Previously a segment of the Co-op Group, the Co-operative Bank, catering to 2.7 million retail patrons, was acquired by a consortium of hedge fund investors in 2017 after teetering on the brink of collapse.
Apart from Shawbrook’s overture, the owners of the bank are purportedly contemplating a broader sale of the asset, assessing alternatives such as OneSavings Bank, Aldermore, and Paragon, among other potential contenders.
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