The Co-operative Bank has dismissed reports that it is in talks with Shawbrook Group about a potential merger.
The Manchester-based bank said in a statement that it is “not aware of any discussions” about a merger with Shawbrook.
The reports of a potential merger emerged on Saturday, after Sky News said that Shawbrook had hired investment bankers at Barclays to propose a deal.
Shawbrook is a small business lender that was acquired by private equity firms BC Partners and Pollen Street Capital in 2017.
The Co-operative Bank is the UK’s seventh-largest bank by assets. It was bailed out by its members in 2013 after it suffered a financial crisis.
Latest Private equity news UK
The bank has been struggling in recent years and has been forced to sell off assets. It is currently in the process of being reprivatized.
A merger between the Co-operative Bank and Shawbrook the private equity firm would create a larger challenger bank with a combined balance sheet of around £20 billion.
However, it is unclear whether the two banks would be able to agree on terms for a deal. The Co-operative Bank is likely to be keen to retain its independence, while Shawbrook may be looking for a quick exit from its investment.
It is also possible that the reports of a potential merger are simply speculation. The Co-operative Bank has denied that it is in talks with Shawbrook, and there is no evidence to suggest that a deal is imminent.
Private equity news uk – No Deal! The UK’s Co-op Bank dismisses reports of talks with Shawbrook
