Co-op bank for sale

Stuart_W

Co-op Bank put up for sale - http://www.bbc.co.uk/news/business-38954115

Pleased it will be sold as a whole entity rather than be broken up, as some earlier reports suggested.

Likely buyers? TSB, Virgin or Nationwide maybe?

tacpot12

I'm not sure it will survive as an entity even if it is sold as one. But it is quite a prize as there is no other way in which a U.K. Bank could acquire 4million customers in a matter of months.

antrobus

Stuart_W wrote: »

Co-op Bank put up for sale - http://www.bbc.co.uk/news/business-38954115

Pleased it will be sold as a whole entity rather than be broken up, as some earlier reports suggested...

The Co-op Bank has already been 'broken up'; in 2015 it reduced its assets from £10.3 bn to £4.9 bn over the year

Stuart_W wrote: »

...Likely buyers? TSB, Virgin or Nationwide maybe?

Why would the Nationwide want to own a bank?

The Co-op Bank retains a core business which is expected to return to profits by the end of this year, so somebody might well want it.

antrobus

tacpot12 wrote: »

I'm not sure it will survive as an entity even if it is sold as one. But it is quite a prize as there is no other way in which a U.K. Bank could acquire 4million customers in a matter of months.

It depends on how much profit you can make out of those 4 million customers. At the moment the Co-op is struggling to do so, which is why it's for sale.

P.S. A non-UK bank might well regard it as an even greater 'prize'.:)

PeacefulWaters

Why would venture capitalists want to sell it if it's so good?

antrobus

PeacefulWaters wrote: »

Why would venture capitalists want to sell it if it's so good?

Because it ain't that good and it needs more capital, and the hedge funds that own the 80% are (presumably) not interested in putting any more money in, and are looking for someone else who will.

Linda_Grace

Should Co op customers be worried or sit tight? I'm currently waiting for them to pay money out on a ppi claim, will I still get it?

JuicyJesus

Welp... think I'm going to TSB then.

I mean their service is pretty good but I'm not sure I'm happy staying with a bank that may or may not exist in the future.

antrobus

Linda_Grace wrote: »

Should Co op customers be worried or sit tight? I'm currently waiting for them to pay money out on a ppi claim, will I still get it?

There is no reason for Co-Op bank customers to be worried. You will still get your PPI pay out.

JuicyJesus wrote: »

Welp... think I'm going to TSB then.

I mean their service is pretty good but I'm not sure I'm happy staying with a bank that may or may not exist in the future.

If everybody took that attitude, then it would be very likely that the Co-Op bank would indeed cease to exist.:)

GibbsRule_No3

Should Co Op being put up for sale make it easier for Basic account holders to be accepted by other banks? I tried to move last year but due to an old DMP, Santander would not open an account for me and Co Op would not upgrade to a full account, despite me now being very healthy moneywise. I shrugged my shoulders and let it ride but if this makes it any easier, with less chance of rejection, then I might start the ball rolling again. I don't want or need credit just fancy a different account with the wifi symbol. Rather embarrassing when the shop assistant says you can use "tap" and I have to say my card does not have it. Have liked Co Op as a bank other than that and their inflexibility by not upgrading me. Local phonecalll to branch is nice.

Former_MSE_Faye

It's not yet clear what a sale would mean for the bank's four million customers in the long term...

Read the full story:
'Co-op Bank puts itself up for sale'

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.