Metro Bank receives takeover interest, boosting share prices. Shares in Metro Bank surged as markets opened on Monday following reports of a takeover approach for the high street lender. The FTSE 250 bank’s stock rose by nine per cent to 122.00p during early trading. Shares had closed at 112.2p on Friday, valuing the bank at over £750 million.
This comes after private equity firm Pollen Street reportedly expressed interest in acquiring the bank, as reported by Sky News. Pollen Street is a major owner of Shawbrook Bank, which has been the subject of merger speculation in recent months.
Shawbrook had approached fintech veteran Starling Bank regarding a £5 billion merger earlier this year, as the owners opted against an IPO. Although discussions stalled, a formal offer remains a possibility, sources told Sky News.
Shawbrook’s private equity owners have been actively seeking new mergers and acquisitions, having made an offer for rival Co-op Bank in October 2023. They were also reported to be considering a bid for Metro at the same time.
Metro’s shares have risen over 230 per cent in the last year after being rescued from near-collapse in November 2024. Colombian billionaire James Gilinski Bacal injected £925 million into the lender, acquiring a 53 per cent stake through his investment vehicle Spaldy Investments. Bacal now sits on Metro’s board.
If Metro were to be taken private, it would represent another setback for the London Stock Exchange. Many firms have recently opted to leave their UK listings in favour of privatisation or relocating overseas. Earlier this month, UK fintech leader Wise moved its primary listing away from London to the US, aiming to access deeper liquidity for growth.
Nikhil Rathi, chief executive of the Financial Conduct Authority, informed the Treasury Committee last Tuesday of concerns about the attractiveness of UK companies, particularly to US buyers.
