Thu, 16 Feb 2017 | BUSINESS SALE
Potential buyers have started signalling their interest in parts of the Co-op Bank, days after its board put it up for sale.
The Times reports that smaller lenders including OneSavings Bank, created by US private equity house JC Flowers, and buy-to-let lender Paragon are among the suitors, alongside Clydesdale Bank and Banco Sabadell, owner of TSB.
It comes as Sir Vince Cable, the former business secretary, and two Treasury Committee MPs voiced concerns about the planned sale.
Earlier this week Manchester-based Co-op Bank, which nearly collapsed four years ago, said it had been adversely affected by low interest rates, restructuring costs and high charges for things like mis-sold PPI.
The bank wants to sell itself outright but it’s thought it may only be able to sell-off parts of its business.
According to the Times, the bank is hoping to agree a sale in the next few months but if nothing emerges the Prudential Regulation Authority may well step in, a move which would force losses on bondholders rather than taxpayers.
The Co-op Bank has around four million customers and is known for its ‘ethical’ stance. The bank does not invest in fossil fuel extraction, the arms trade, genetic engineering and other ‘non-ethical’ sectors, a standpoint its board thinks will make it attractive to buyers.
But some are concerned that a sale of the bank raises competition and consumer choice problems.
Sir Vince Cable and MPs George Kerevan and Helen Goodman told BBC 5 live today that a sale would be “bad news” for UK bank customers.
"Whatever we think about the Co-op Bank and how it got into trouble, it's bad news when we have only a very, very small number of banks catering to domestic and business customers," Sir Vince said.
"Britain is in a very unusual position of having a very high concentration of banks, quite unlike most continental countries such as Germany, quite unlike the United States, where there are lots of big and small banks catering to different needs."
If a sale does go ahead, analysts think TSB is one of the most credible bidders, with one observer telling the Times: “If they could get the Co-op at the right price and with the right timescale, they would be very interested.”
Find other financial businesses for sale.
This well-established business in Northern Ireland offers a robust foothold in the concrete solutions and groundworks industry, boasting a 75% tender success rate and strong client loyalty built over 55 years. With a comprehensive fleet and expertise...
This established training and assessment centre specialises in gas, oil, and renewable energy qualifications, providing accredited courses and independent gas safety audits for both domestic and commercial clients. With long-standing relationships wi...
The business is a fourth-generation family business, established for over 105 years and specialising in luxury indoor conservatory and outdoor garden furniture made from natural, sustainably sourced materials.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.