Nationwide and Investec are reportedly among the companies set to bid for alternative lender Aldermore. Its South African owner, First Rand, is currently fielding first-round offers for the company.
Sources indicate that both lenders are likely to submit bids for the UK bank before an initial deadline on Tuesday. First Rand began the sale process earlier this year after Aldermore's motor lending division, Motonovo, was implicated in the motor finance misselling scandal.
Analysts at RBC estimated Aldermore's valuation at £1.45bn, which includes its motor finance business. Lloyds is also expected to submit a bid, with Natwest reportedly among other potential bidders. Private equity firm Warburg Pincus is also likely to bid, while JC Flowers and CVC are set to collaborate on a joint bid.
This interest in Aldermore comes amidst a period of consolidation within Britain's mid-market banking sector.