In the wake of the car financing mis-selling crisis, Britain’s Metro Bank is investigating a £2 billion ($2.7 billion) merger with rival lender Aldermore, which was listed for sale by South Africa’s FirstRand, according to a Tuesday report from Sky News.
Metro Bank is one of several companies considering a bid for Aldermore, a UK-based mortgage and business lender, and is in the early stages of investigating a formal offer.
According to earlier reports from Sky News, Shawbrook and Lloyds Banking Group were also looking into a possible takeover of Aldermore.
FirstRand said in April that it would be leaving Aldermore after having to increase its provisions to £750 million due to expensive payouts associated with a UK car financing mis-selling issue.
To supplement its British motor loan company, MotoNovo, and diversify its revenue beyond its home continent, FirstRand paid £1.1 billion to acquire Aldermore in 2017.
As of 1107 GMT, Metro Bank shares were up 2% at 174.2 pence.
