Co-operative Bank calls in top bankers to explore takeover bids
The Co-operative Bank has called in top investment bankers as it begins eyeing up potential acquisition targets and exploring a move to consolidate the UK’s mid-size banking market, according to reports.
The lender has reportedly called in PJT partners to help scrutinise potential takeover targets and advise on the financing requirements for any substantial deals, Sky News’ Mark Kleinman first reported.
Analysts predict a string of acquisitions in the UK’s mid-size banking market, with the appointment of PJT by the Co-operative Bank coming just months after the firm launched a £1bn takeover bid for TSB.
The merger would have created a business with eight million customers in areas such as mortgage lending, current accounts and savings products, but it was rebuffed by TSB’s Spanish owner Sabadell.
News of PJT’s appointment comes the day before it prepares to update the city on financial performance tomorrow, with analysts predicting a strong performance.
British banks have been reporting bumper results in the last two weeks with lenders buoyed by rising interest rates and the release of loan loss reserves stored up through the peak of the pandemic.