UK's Metro Bank eyes $2.7 billion merger with Aldermore, Sky News reports (updated)

Shawbrook

21/07/2026 12:12

Adds details from report and background on Aldermore throughout

    July 21 (Reuters) - Britain's Metro Bank MTRO.L is exploring a £2 billion ($2.7 billion) merger with rival lender Aldermore, which was put up for sale by South Africa's FirstRand FSRJ.J following the motor finance mis-selling scandal, Sky News reported on Tuesday.
Here are some more details:

        Metro Bank is at the early stages of exploring a formal offer for Aldermore, according to the report, and is among a number of parties mulling an offer for the UK-based mortgage and business lender.
      

        Sky News had previously 
        reported
         that Lloyds Banking Group LLOY.L and 
        Shawbrook
         SHAW.L were also exploring a potential takeover of Aldermore.
      

        In April, FirstRand said it will exit Aldermore, after costly payouts tied to a UK 
        motor finance mis-selling scandal
         forced it to hike provisions to £750 million.
      

        FirstRand acquired Aldermore in 2017 for £1.1 billion to diversify its revenue beyond its home continent and complement its British motor finance business, MotoNovo.
      

        Metro Bank declined to comment on the report. Aldermore and FirtRand did not immediately respond to requests for comment.
      

        Metro Bank shares were up 2% at 174.2 pence as of 1107 GMT. 
      
($1 = £0.7448)

 (Reporting by Neeshita Beura and Anushka Chourasia in Bengaluru; Editing by Devika Syamnath)
 ((Neeshita.Beura@thomsonreuters.com))