Leading challenger banks in advanced talks about £1.6bn merger
OneSavings Bank and Charter Court Financial Services Group are in advanced talks about a merger that would create a lender worth more than £1.6bn
Discussions have been ongoing for a number of months between two of Britain's biggest challenger banks and an announcement could confirm a deal within the next fortnight, according to Sky News.
Read more: Bank of England 'more likely to cut interest rates' after no-deal Brexit
OneSavings, which has a market value of more than £900m, would make an offer for Charter Court, valued at around £730m, under the current terms, but the deal could still fall apart, a source told Sky News.
If a deal is completed, it would create a larger bank among the so-called challenger banks formed in wake of the financial crisis.
OneSavings has long been tipped to lead consolidation in the challenger bank sector under the leadership of chief executive Andy Golding, who is expected to become CEO of the group if a merger is completed.
Read more: Nationwide invests in ex-Barclays CEO's firm to boost business banking
Elliott Advisors is the largest shareholder in Charter Court, which listed on the London Stock Exchange in 2017, and its verdict is likely to be significant.
Neither OneSavings or Charter Court were immediately available for comment.