Co-op Bank ends sale talks with Cerberus

Nick Slape

Manchester-based Co-operative Bank said on Monday it has ended talks on a possible sale of the company.

Co-op Bank has declined to comment on reports claiming the talks were with Cerberus Capital Management.

The self-styled “ethical bank” has been recovering in recent years from a number of scandals that resulted in a rescue by a group of hedge funds.

“The Co-operative Bank plc and/or its ultimate shareholders from time to time attract approaches regarding the possibility of acquiring the bank, given the progress made in its turnaround and strength of its brand,” said Co-operative Bank.

“The bank disclosed on 17 November that it had attracted an approach from a financial sponsor regarding the possibility of a sale of the bank and/or the holding company and that the bank’s majority shareholders were in preliminary discussions with the financial sponsor relating to that approach.

“The bank’s majority shareholders have now confirmed that these discussions have ended.

“The bank remains committed to delivering its strategy and to returning to sustainable profitability, with the continued support of its majority shareholders.”

Co-operative Bank CEO Nick Slape said: “Our priority is to support our personal and small business customers through the current period of economic uncertainty.

“We are making good progress as we deliver our strategy, having achieved some important milestones during 2020, and we are focused on returning to profitability and building a strong and successful Co-operative Bank.”