Metro Bank is in early-stage discussions to merge with fellow UK challenger bank Aldermore in a deal valued at roughly £2 billion, or about $2.7 billion. Sky News broke the story on July 21, and Metro Bank’s share price promptly climbed on the news.
Aldermore is currently being sold by its parent company, South African financial group FirstRand, which acquired the lender back in 2018. The sale comes after FirstRand faced headwinds in the UK motor finance sector.
What the deal actually looks like
No deal terms have been confirmed, no regulatory approvals are in place, and no timeline has been disclosed. Aldermore specializes in retail and SME lending, which overlaps with Metro Bank’s own focus on small business and personal banking customers.
Metro Bank itself has had a turbulent few years. The bank underwent a major capital raise and restructuring after accounting irregularities surfaced in 2019, and it has been working to rebuild investor confidence ever since.
