// Sainsbury’s in in advanced talks to offload its banking arm to Centerbridge Partners
// The potential agreement is thought to be within weeks
// Sainsbury’s Bank offers products such as credit cards and home insurance to around two million users
Sainsbury’s is in advanced talks to offload its banking arm to US private equity firm Centerbridge Partners in a deal that could value the lender at £200 million.
The potential agreement between the Edinburgh-based bank, which employs over 1500 people and the Big 4 grocer is thought to be within weeks, but could still fall apart, Sky News reports.
The move comes nearly a year after Sainsbury’s kicked off an auction of the banking division, after the grocer’s chief executive officer, Simon Roberts, looked for ways to boost returns.
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In the year February 2021, Sainsbury’s Bank reported a pre-tax loss of £162 million, following a £5 million profit a year earlier, attributing the Covid-19 pandemic to less demand for travel money.
Currently, Sainsbury’s Bank offers products such as credit cards and home insurance to around two million users, but, if successful, Centerbridge will use the platform for other acquisitions.
In 2020, Sainsbury’s Bank chairman Roger Davis notified the board of his plans to step down, after nearly seven years in the role.