American private equity firm Carlyle has scrapped talks to acquire UK-based mid-sized lender Metro Bank.
As per media reports, responding to Carlyle’s statement, Metro Bank said: “The board continues to strongly believe in the standalone strategy and future prospects of Metro Bank.”
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The talks fell apart just two weeks after the challenger bank announced that it is in talks with Carlyle regarding a potential takeover.
Established in 2010, the mid-sized lender’s bid to challenge UK’s high street lenders failed after its misreporting scandal in 2019.
The lender has been struggling to make profits, which has decreased its valuation, making it a potential target for a buyout.
At the time of the announcement, the lender said that it is not certain if the offer will be made and advised shareholders to take no action.
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By GlobalDataAs per Financial Times’ report, soon after the announcement, the UK’s regulator imposed a deadline on Carlyle to make a clear stand on the buyout offer, which gave it little time to confirm any offer.
Metro Bank’s shares peaked in 2018 and have dropped 97% bringing its market valuation to £200m.
In the Q3 trading update, Metro Bank CEO Daniel Frumkin said that the bank’s business had improved and was witnessing a “gradual return to normalcy”.
In a separate development, recently, Co-operative Bank made an offer to buy Banco de Sabadell’s UK subsidiary TSB Bank, which was rejected by the board of Spanish lenders.
