US-based private equity firm Centerbridge Partners is reportedly nearing an agreement to acquire UK-based supermarket giant Sainsbury’s banking unit.
According to a Sky News report, Centerbridge has started discussions with the supermarket chain to purchase Sainsbury’s Bank.
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The plan involves acquiring the banking unit and then sign a use licensing agreement with the supermarket chain to use the Sainsbury’s brand.
Currently, the talks are in advanced stage and an agreement may be signed within weeks. However, the potential deal may still fall through, a person familiar with the development told Sky News.
The purchase price can be around £200m, the report added.
According to the bank website, Sainsbury’s Bank provides mobile-led financial services to Sainsbury’s and Argos customers.
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By GlobalDataThe scope of services includes credit cards, savings and loans and insurance services among others. The Edinburgh-headquartered lender is said to have more than two million customers.
In 2019, the lender withdrew from the mortgage market due to intense competition.
Sainsbury started offering financial services in 1997. In 2013, the supermarket chain acquired full ownership by purchasing 50% stake from its joint venture partner.
The Sky News report added that Centerbridge may use Sainsbury’s Bank acquisition to further its plans to purchase other banking operations in the UK.
