Shares in Metro Bank surged as markets opened on Monday, following reports that the high street lender had been approached for a takeover.
The FTSE 250 bank’s stock rose by nine per cent to 122.00p during early trading, up from Friday’s closing price of 112.2p, pushing its market capitalisation above £750m, as reported by City AM.
This comes after private equity firm Pollen Street reportedly expressed interest in acquiring the bank and taking it private, according to Sky News. Pollen Street is one of the majority owners of Shawbrook Bank, which has been at the centre of merger rumours in recent months.
Earlier this year, Shawbrook approached fintech pioneer Starling Bank about a potential £5bn merger, as the owners decided against an IPO. Although discussions have currently stalled, sources told Sky that the possibility of a formal offer remains.
Shawbrook’s owners eying mergers
Shawbrook’s private equity owners have been actively seeking new mergers and acquisitions, having made a bid for rival Co-op bank in October 2023. At the same time, they were reportedly considering a bid for Metro.
Over the past year, Metro’s shares have soared by over 230 per cent after the bank was saved from near-collapse in November 2024.
Colombian billionaire James Gilinski Bacal played a key role in the rescue, injecting £925m into the lender in exchange for a 53 per cent stake through his investment vehicle Spaldy Investments.
Bacal now holds a position on Metro’s board.
Should Metro fall into private administration, it would represent another significant setback for the already beleaguered London Stock Exchange.
In recent weeks, a number of companies have abandoned their primary or entire UK listing in pursuit of privatisation or foreign listings.
UK fintech star Wise shifted its primary listing from the UK earlier this month, aiming to tap into greater liquidity to fuel its expansion ambitions.
Nikhil Rathi, chief executive of the Financial Conduct Authority, expressed concerns to the Treasury Committee last Tuesday: “There is this question around how attractive UK companies have become, particularly to US buyers.”
