Shares of Metro Bank have experienced a notable increase in early trading this morning following reports that private equity firm Pollen Street Capital is potentially considering a takeover.
Metro Bank’s stock surged by 16.6% in light of these developments, specifically regarding Pollen Street’s interest in merging with Shawbrook Bank, which it predominantly owns. Shawbrook’s management has ramped up efforts to explore merger opportunities, having previously engaged in discussions with Starling Bank about a £5 billion merger.
Originally launched in the wake of the 2008 financial crisis, Metro Bank made history as the first new lender to establish a presence on British high streets in over a century. However, the bank faced significant turmoil after an accounting scandal in 2023 nearly drove it into insolvency.
To navigate these choppy waters, Metro Bank secured a £925 million rescue package led by Colombian billionaire James Gilinski Baca. The bank has also announced a strategy to reduce its workforce, cutting over a thousand jobs to stabilize operations.
Meanwhile, in January, Shawbrook was rumored to be considering a sale or a potential listing in London, with a valuation projected at £2 billion.
A move to take Metro Bank private would pose additional challenges for the London Stock Exchange, which has seen several companies shift from their UK listings or opt for privatization.