Shawbrook plots £3.5bn merger with Co-operative Bank

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One of Britain's biggest lenders to small businesses is hatching plans for a £3.5bn tie-up with the Co-operative Bank

One of Britain's biggest lenders to small businesses is hatching plans for a £3.5bn tie-up with the Co-operative Bank.

The approach comprised an offer to hand the Co-operative Bank's shareholders roughly 29% of the combined banking group in a deal that would have valued the target at approximately £800m, they said.to advise it on its interest in its smaller, consumer-focused peer.Shawbrook remains interested in a takeover of the Co-operative Bank and is expected to participate actively in that process, which will formally get under way as soon as next month.

Shawbrook itself has been the subject of speculation about a transaction that would realise value for its owners, the private equity firms BC Partners and Pollen Street Capital.

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