Lloyds Banking Group is evaluating a potential acquisition of Aldermore, the British bank owned by the South African group FirstRand, according to a report published on Monday, June 22 by the British media Sky News.
According to the report, Lloyds is particularly interested in Aldermore’s small business financing and project financing activities. However, no decision regarding a formal offer has been made at this stage.
FirstRand announced in April its intention to sell Aldermore, citing uncertainty related to the compensation scheme for the British motor finance sector. The group has increased its provisions for disputes related to potentially mis-sold car loans to £750 million (1.02 billion USD).
According to Sky News, any transaction could require guarantees covering potential additional obligations related to this issue, as the scope and timeline of the repair program led by the Financial Conduct Authority (FCA) remain uncertain.
The British bank Shawbrook is also reportedly considering a merger with Aldermore, according to the same report.
