Suitors lining up for Co-op Bank

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.


Share this article



Latest Businesses for Sale

Day Spa
Manchester, UK Wide

A very reputable, award winning, day spa offering a selection of rejuvenating treatments is available in the bustling city of Manchester. Offers invited.

Asking Price: £315,000
Turnover: £600,000

LEASEHOLD


Automotive Repair Business
Gloucestershire, UK Wide

This is a longstanding automotive repair business in Gloucestershire, now available for an interested buyer to purchase. Offers invited.

Asking Price: £925,000
Turnover: £414,249

FREEHOLD


CNC Precision Engineering Firm
Isle Of Wight, UK Wide

A remarkable opportunity has emerged to acquire an established precision engineering business which has cemented solid foundations since it began trading in 1998. Offers invited.

Asking Price: £1,200,000
Turnover: £907,946

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
21
 
Apr
 

Cambridge artificial intelligence / machine learning company bought by customer | BUSINESS SALE

Early stage advanced data analysis company Rinocloud has bee...

 
19
 
Apr
 

Accountancy firm to expand in Scotland | BUSINESS SALE

A UK-based accountancy firm with offices peppered across the...

 
18
 
Apr
 

Recruitment firm acquires counterpart | BUSINESS SALE

Swindon-headquartered recruitment company Outsource UK has s...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources