The Co-operative Bank is reportedly in play to acquire Sainsbury’s Bank’s £650 million mortgage loan book.
Co-operative Bank reportedly bidding for Sainsbury’s Bank £650m loan book
The Co-operative Bank is the frontrunner amid a bidding war being run by consultancy Deloitte that has seen challenger Starling Bank already drop out, Sky News reports.
Sky News reported a year ago that the bank had hired bankers from PJT Partners to help spearhead a consolidation of the mid-tier UK retail banking market.
In November 2021, Co-operative Bank expressed an interest in buying fellow UK mid-tier player TSB, which was rejected by Spanish owner Sabadell.
Despite nearing collapse twice in the last decade, the Co-operative Bank is expected to reveal fairly positive financial results next week, thanks to rising interest rates, Sky News notes.
The shedding of its mortgage loan book would see Sainsbury’s Bank formally leave the UK mortgage market. It halted any new lending in 2019.
British supermarket giant Tesco is reportedly considering the sale of its banking services arm, Tesco Bank. The grocery firm is reportedly launching a review of its UK banking activities and has roped in Goldman Sachs to advise on Tesco Bank’s future.
