Lloyds weighs bid for Aldermore as South Africa's FirstRand seeks exit, Sky News reports
Lloyds weighs bid for Aldermore as South Africa's FirstRand seeks exit, Sky News reports June 22 (Reuters) - Lloyds Banking Group LLOY.L is exploring a potential takeover of Aldermore, the lender being sold by South Africa's FirstRand FSRJ.J amid a motor finance mis-selling scandal engulfing Britain's banking sector, Sky News reported on Monday.
Here are some details:
Lloyds is examining Aldermore for its small business lending and project finance capabilities, but is not certain to proceed with a formal bid, Sky News said, citing sources.
FirstRand said in April it had planned to exit from its British challenger bank, Aldermore, blaming a costly and "deeply flawed" UK motor finance redress scheme, as it raised provisions for mis-sold motor loans to £750 million ($994 million).
Sky News reported any buyer will likely require an indemnity against further compensation liabilities amid ongoing uncertainty about the UK Financial Conduct Authority's redress programme timing and scope.
Shawbrook SHAW.L is also examining a combination with Aldermore, according to Sky News.
Reuters could not immediately verify the report
Lloyds and Aldermore could not be immediately reached for comment.
($1 = £0.7545)
(Reporting by Nithyashree R B in Bengaluru; Editing by Shreya Biswas)