Lloyds among parties exploring takeover of Aldermore - report

22nd Jun 2026 15:11

(Sharecast News) - Lloyds Banking Group is reportedly is among the parties exploring a potential takeover of Aldermore.

According to Sky News, Lloyds has begun preparations for a possible bid for the South African-owned bank, which has been put up for sale amid the car finance mis-selling scandal.

City sources told Sky on Monday that Lloyds was examining Aldermore because of its small business lending and project finance capabilities. They cautioned that the high street bank was by no means certain to proceed with a formal bid.

Aldermore has been put on the market by FirstRand following the Financial Conduct Authority's proposals for a £9.1bn redress scheme for motor finance mis-selling victims.

Banking sources told Sky that any buyer of Aldermore will require an indemnity against any further compensation liabilities amid ongoing uncertainty about the timing and scope of the FCA's redress programme.

Sky News has already revealed that Shawbrook, which floated in London last year, is also examining a combination with Aldermore - a deal that would kickstart another round of consolidation among the UK's challenger banks. A number of private equity firms also plan to request information on Aldermore once an auction formally kicks off, Sky said.

Aldermore has set aside £750m to compensate motorists who were mis-sold car finance products.

The FCA has been notified of legal challenges to its scheme from three parties, including the finance arms of BMW and Volkswagen.

"Cognisant of protecting shareholder value and ensuring Aldermore's future success, the group will work with Aldermore's board and respective regulators to facilitate an orderly ​ownership transition," FirstRand said in April.

At 1512 BST, Lloyds shares were up 3.6% at 108.85p.