Co-op bank for sale

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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?
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Comments

  • tacpot12
    tacpot12 Posts: 7,968 Forumite
    First Anniversary Name Dropper First Post
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    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.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • antrobus
    antrobus Posts: 17,386 Forumite
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    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
    antrobus Posts: 17,386 Forumite
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    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
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    Why would venture capitalists want to sell it if it's so good?
  • antrobus
    antrobus Posts: 17,386 Forumite
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    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
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    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
    JuicyJesus Posts: 3,830 Forumite
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    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.
    urs sinserly,
    ~~joosy jeezus~~
  • antrobus
    antrobus Posts: 17,386 Forumite
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    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
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    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.
    Paddle No 21 :wave:
  • Former_MSE_Faye
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    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'
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