Metro Bank Takeover approach increases concerns about the London stock market Exodus
Metro Bank has received a takeover approach from private equity firm Pollen Street Capital, a move that could lead High Street lenders to private private attention and heighten concerns about the shrinking lineup of London Stock Exchange-listed companies.
This approach has not led to a formal bid in the past two weeks and is considered to be in the early stages of discussion. Pollen Street, together with BC partners, owns stake in Shawbrook Bank, is known for its financial services investments and has long been known as a potential acquirer of Metro Bank.
If successful, the deal would represent a dramatic twist on the Metro, launched in 2010, ambitiously sabotaging UK banking and becoming the first new high street bank in more than a century. It floated on LSE in 2016, hitting a market value of £3.5 billion at its peak, but now its setbacks are a series of setbacks, including a devastating accounting scandal in 2019.
The bank was rescued from its near collapse in 2023 through a complex refinancing agreement that handed over 53% of control to Colombian billionaire Jaime Gilinski Bacal. Since then, its share price has increased, but it remains a small part of its previous valuation.
Under CEO Daniel Frumkin, Metro has been repositioning its business, shifting its focus from retail to commercial banking and consolidating its physical footprint to 75 stores and about 3,455 employees.
Pollen Street’s successful bid will mark another chapter in the UK Challenger Bank merger. Shawbrook itself is reportedly considering a stock market listing, although expansion can now be explored through acquisitions.
Metro Bank News has attracted attention in the London Stock Exchange’s reduction appeal. More than 30 companies have emerged, either planning to leave the exchange this year, many of which are due to private equity acquisitions or moving to more favorable markets abroad.
The potential sale of Metropolitan banks to private buyers will further underscore the pressures facing UK public companies, including low valuations, stricter regulatory scrutiny and a shift in investor appetite, from public stocks and private markets.
Neither Metro Bank nor Pollen Street Capital publicly commented on the report. However, regulators and investors are watching this situation closely, which is a leading position in ongoing private equity to underperform or undervalued listed assets.
