Mortgage News
Aldermore eyes Co-op Bank takeover – reports
Aldermore Bank has reportedly set its sights on buying out the Co-operative Bank.
A news report from Sky News said the lender has appointed financial services firm BNP Paribas to table an offer for the Co-op Bank.
The Co-op Bank has reportedly been seeking a buyer since April this year, and Aldermore is said to be up against Shawbrook, Paragon Banking Group and OSB in a bid to acquire the lender.
Last month, Sky News revealed that Shawbrook was seeking a merger deal with Co-op Bank in an agreement worth £3.5m. Shawbrook has recently expanded its profile following the buyout of specialist lender Bluestone Mortgages.
Shawbrook declined to comment on this offer.
According to Reuters, Co-op Bank has given a deadline of October for potential buyers to make a bid.
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Its most recent results for the first half of 2023 showed that the Co-op Bank had completed £1.52bn in new mortgage completions and delivered a profit before tax of £61.8m. Its performance was relatively flat on the same period in 2022.
Last month, it agreed to purchase Sainsbury’s Bank’s mortgage portfolio comprising 3,500 customers with balances of around £479m.
Both the Co-op Bank and Aldermore declined to comment when approached by Mortgage Solutions.