Lloyds weighs bid for Aldermore as South Africa's FirstRand seeks exit, Sky News reports Lloyds Banking Group is exploring a potential takeover of Aldermore, the lender being sold by South Africa's FirstRand amid a motor finance mis-selling scandal engulfing Britain's banking sector, Sky News reported on Monday.  Source: Reuters. Here are some details: - Lloyds is examining Aldermore for its small-business lending and project-finance capabilities, but is not certain to proceed with a formal bid, Sky News said, citing sources.
- FirstRand said in April it had planned to exit from its British challenger bank, Aldermore, blaming a costly and "deeply flawed" UK motor finance redress scheme, as it raised provisions for mis-sold motor loans to £750m ($994m).
- Sky News reported any buyer will likely require an indemnity against further compensation liabilities amid ongoing uncertainty about the UK Financial Conduct Authority's redress programme timing and scope.
- Shawbrook is also examining a combination with Aldermore, according to Sky News.
- Reuters could not immediately verify the report.
- Lloyds and Aldermore could not be immediately reached for comment.
($1 = £0.7545) |
