New bidders emerge on high street
(15 July 2010 − UK) Britain’s banking high street is set to become flooded with new entrants as offers are made and contracts are drawn up.
J.C. Flowers, a private equity investment firm, has begun talks to acquire Kent Reliance, a building society with a single branch, in an effort to crack into the UK banking market and gain a banking licence.
The acquisition would open the door for the New York based firm to create a new bank that could potentially acquire up to 10 more building societies, The Times reported.
In 2007 the group made an unsuccessful bid for failing Northern Rock and is now also looking at whether to enter the bidding war for branches, accounts and brands that are up for sales by Lloyds Banking Group, Royal Bank of Scotland and Northern Rock.
Meanwhile, a group called Project New Bank, led by Lord Levene, has been told by the Financial Services Authority that the group can forge ahead and apply for a banking licence without purchasing a smaller bank first before bidding for bigger assets.
The FSA is understood to have told the group that it can go through a change of control process for any business it buys at the same time.
A full time management team has been recruited for Project New Bank and with Lord Levene chairing the bank’s investment vehicle.
Also joining on the board will be David Walker, who last year wrote a report on bank management for the government, Lord McFall, former chairman of the Treasury Select Committee and former European Commissioner Charlie McCreevy.
The new bank is interested in part of Lloyds business including 600 branches and Lloyds TSB in Scotland.
The acquisition would open the door for the New York based firm to create a new bank that could potentially acquire up to 10 more building societies, The Times reported.
In 2007 the group made an unsuccessful bid for failing Northern Rock and is now also looking at whether to enter the bidding war for branches, accounts and brands that are up for sales by Lloyds Banking Group, Royal Bank of Scotland and Northern Rock.
Meanwhile, a group called Project New Bank, led by Lord Levene, has been told by the Financial Services Authority that the group can forge ahead and apply for a banking licence without purchasing a smaller bank first before bidding for bigger assets.
The FSA is understood to have told the group that it can go through a change of control process for any business it buys at the same time.
A full time management team has been recruited for Project New Bank and with Lord Levene chairing the bank’s investment vehicle.
Also joining on the board will be David Walker, who last year wrote a report on bank management for the government, Lord McFall, former chairman of the Treasury Select Committee and former European Commissioner Charlie McCreevy.
The new bank is interested in part of Lloyds business including 600 branches and Lloyds TSB in Scotland.
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