Co-op Bank reveals takeover talks with US private equity buyer

News prompts speculation that UK banking sector is heading for a wave of merger and takeover deals

The Co-operative Bank is in takeover talks with a US private equity firm, as speculation builds that the UK banking sector is heading for a wave of merger and takeover deals.

The bank said it had received an approach from a “financial sponsor with knowledge and experience of investing in European financial services businesses regarding the possibility of a sale of the bank and/or the holding company”. The lender declined to name the suitor but it is understood that New York-based Cerberus Capital Management is behind the bid.

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