Bank of Ireland Poised to Join Battle for Birmingham Midshires Building Society

Strategic Insights -

Bank of Ireland is considering a bid to acquire Birmingham Midshires Building Society, with reports suggesting a proposal could be submitted as early as next week. The move comes just days after the society was released from a £630m offer from Royal Bank of Scotland. Bank of Ireland has stated its interest in expanding its interests in the UK mortgage market, following its successful acquisition of Bristol & West Building Society for £600m last July.

Key Takeaways:

  • Bank of Ireland is considering a bid to acquire Birmingham Midshires Building Society, with a proposal potentially being submitted as early as next week.
  • The bid would top the £780m already offered by the Halifax and could lead to a bidding war with other interested parties.
  • Bank of Ireland has explicitly stated its interest in expanding its interests in the UK mortgage market.
  • The Irish bank has significant ties with Royal Bank of Scotland, which demanded a £5m payment after Midshires reneged on a deal struck last August to buy the society for £630m.
  • Royal Bank of Scotland holds a majority stake in Citizens Financial Group, a bank based in New England, while Bank of Ireland has a 23% stake in the bank.
  • Both George Mathewson, chief executive of RBS, and Pat Molloy, chief executive of Bank of Ireland, sit on the board of Citizens Financial Group.

Statistics:

  • Bank of Ireland's bid for Birmingham Midshires Building Society could top the £780m already offered by the Halifax.
  • The £630m deal with Royal Bank of Scotland was struck last August.
  • Bank of Ireland acquired Bristol & West Building Society for £600m last July.
  • Bank of Ireland has a 23% stake in Citizens Financial Group.
  • Citizens Financial Group is based in New England, USA.
  • Both George Mathewson and Pat Molloy sit on the board of Citizens Financial Group.

Sources:

  • "Bank of Ireland poised to join battle to buy Birmingham Midshires Building Society", Financial Times, no date.
  • "Halifax to meet Midshires in bid to secure pounds 780m deal", Financial Times, no date.