Private equity firm Apollo Global Management has reportedly dropped plans to acquire UK-based lender Metro Bank.
The US-based firm reached out to the lender for a potential acquisition several weeks ago, Bloomberg has reported citing people familiar with the matter.
Go deeper with GlobalData
Recently, Apollo decided to call off the talks becoming the second buyout firm to do so.
Last month, American private equity firm Carlyle decided to end talks to acquire a mid-sized lender.
The talks fell apart just two weeks after Metro Bank revealed that it was in talks with Carlyle regarding a potential takeover.
Metro Bank was established in 2010 to challenge the UK’s high street lenders but failed to do so due to its misreporting scandal in 2019.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAt its peak in 2018, the lender had a market valuation of nearly $4.8bn.
Metro Bank has been struggling to make profits, which has brought its valuation to about £173m, making it a potential target for a buyout.
Recently, Legal & General sold its stake in Metro Bank stating that it was “part of an ongoing wider reduction of a large basket of stocks across index funds”.
Meanwhile, in October this year Co-operative Bank made an offer to acquire Banco de Sabadell’s UK subsidiary TSB Bank.
The board of Spanish lender rejected Co-operative Bank’s offer. As per Sky News’ report, Co-operative Bank was willing to pay over £1bn for Sabadell’s UK subsidiary.
