Challenger banks OneSavings and Charter Court in £1.6bn merger move
- Merger would create a lender with a larger market value than Metro Bank
Two challenger banks are in advanced discussions about a £1.6billion merger that would create a lender with a larger market value than Metro Bank, it emerged yesterday.
A deal, if agreed, could be announced within a fornight, Sky News reported.
OneSavings specialises in lending to buy-to-let landlords, but is also a commercial lender and offers savings accounts. It has just six branches and primarily offers its services online.
OneSavings specialises in lending to buy-to-let landlords
Charter Court, which listed on the stock exchange in 2017, is also a specialist mortgage lender and offers savings accounts online.
Elswhere, Non-Standard Financial (NSF) has formally tabled its £1.3billion takeover offer for embattled doorstep lender Provident Financial.
In a bid backed by star fund manager Neil Woodford, NSF has offered Provident shareholders 8.88 new NSF shares for each share in Provident Financial.
Provident has rebuffed the offer from NSF, which is run by John van Kuffeler, formerly CEO and then chairman of Provident.
It said the bid undervalued the business and that NSF had a ‘track record of value destruction’.