Aldermore battle heats up as private equity giant CVC motors into auction

The race to buy Aldermore, the South African-owned challenger bank ensnared by the scandal over motor finance mis-selling, will intensify next month when private equity firms including CVC Capital Partners lodge offers for the company.

Sky News has learnt that CVC Capital, which owns stakes in companies such as the RAC and Six Nations Rugby, has been laying the groundwork for months to bid for Aldermore.

Along with a number of other financial investors and banks, CVC is expected to submit a takeover proposal ahead of a deadline in September.

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Lloyds Banking Group, Britain's biggest high street lender, is also likely to make an offer, according to banking industry sources.

Meanwhile Metro Bank, which had been exploring a bid, is now unlikely to do so, the sources added.

Aldermore was put up for sale earlier this year amid anger at FirstRand, its parent company, about the City watchdog's proposals for a £9bn motor finance mis-selling compensation scheme.

FirstRand has calculated that it will be liable for about £750m in payouts under the Financial Conduct Authority programme, which is the subject of a legal challenge from several companies including the finance arms of BMW and Volkswagen.

The South African group bought Aldermore in 2017 for £1.1bn.

Bankers advising FirstRand are expected to give bidders the option of making separate offers for Aldermore's banking operations and its motor finance arm, called MotoNovo.

Any buyer of Aldermore is also likely to seek an indemnity against future compensation liabilities.

Bank of America and Rand Merchant Bank are advising FirstRand on the sale process.

CVC declined to comment.

(c) Sky News 2026: Aldermore battle heats up as private equity giant CVC motors into auction