Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Trump’s commerce secretary Ross plots £700m merger with UK’s Atom Bank

Trump’s commerce secretary Ross plots £700m merger with UK’s Atom Bank

A SPAC set up by the financier Wilbur Ross is proposing a deal that will see the Durham-based digital bank listed on the New York Stock Exchange.

A senior figure in Donald Trump's Cabinet is plotting a £700m deal that would see one of Britain's biggest digital-only banks being listed on the US stock market.

Sky News has learnt that a special purpose acquisition company (SPAC) set up by Wilbur Ross, who was President Trump's commerce secretary between 2017 and 2021, is in detailed talks about a merger with Durham-based Atom Bank.

Banking industry sources said this weekend that the discussions were at an advanced stage, although there was no guarantee that an agreement would be reached, particularly against the backdrop of equity markets haunted by soaring inflation and rising fears of recession.

If completed, however, a deal would make Atom Bank one of the most prominent UK-based companies to be taken public through a SPAC, joining the likes of Cazoo, the digital car-buying platform, and Vertical, the aerospace company founded by Stephen Fitzpatrick, the entrepreneur behind Ovo Energy.

Under the terms of the prospective merger, Atom Bank would agree to merge with Ross Acquisition Corp II, a SPAC which listed on the New York Stock Exchange in the spring of last year, according to a banking industry insider.

The SPAC - a shell company launched with the purpose of finding an operating business to combine with - would also raise about £150m through a so-called PIPE (private investment in public equity).

Mr Ross and his other founding SPAC shareholders could choose to participate in that PIPE fundraising.

A deal would take place in one of the most volatile stock market environments for years, and after a string of SPACs have abandoned previously announced transactions or been forced to hand money back to their original investors after failing to identify a deal.

If it does announce a deal with Atom Bank, it would probably take around six months to complete.

Atom Bank Offices


In 2010, WL Ross, Mr Ross's private equity firm, snapped up a 21% stake in Virgin Money, not long before it was transformed into a major industry player by buying a big chunk of the nationalised bank Northern Rock.

WL Ross sold the last of its Virgin Money shares in 2016.

Mr Ross has been a prominent financier on Wall Street for decades, earning the nickname 'the king of bankruptcy' for his track record of buying distressed companies in the steel and coal industries and selling them for sizeable profits.

As a senior figure in the Trump administration, Mr Ross helped shape the US government's approach to ties with China - the world's most important bilateral trading relationship.

He has also been a big shareholder in Bank of Ireland and a number of US lenders.

Atom Bank has made little secret of its plans to pursue a public listing in the coming years, although it would have been expected to float in London given that its business is entirely focused on the UK.

Since being established in 2014, it has made less spectacular progress than rivals such as Monzo, Starling Bank and, in particular, Revolut, which was valued at over $30bn in a funding round last year.

Atom Bank has total customer deposits of more than £2.5bn and has announced mortgage completions of over £3bn, but has set ambitious targets for growing those figures in the coming years.

In total, it has raised about £500m in equity from investors including the Spanish bank BBVA, Toscafund and the now-dissolved Woodford Investment Management.

Last year, it attracted headlines by becoming one of the first substantial employers to switch to a four-day week.

It said the move, which included a reduction in working hours from 37 to 34 with no impact on salaries, was designed to support employees' mental and physical wellbeing, as well as to boost productivity.

Announcing a £75m funding round that valued it at £435m in February, Mark Mullen, the Atom Bank chief executive, says: "We've achieved a number of important financial milestones and maintained our excellent reputation with our customers."

"Our investors are now backing our continued growth. This capital will allow Atom to build on the progress we have made, and to keep offering financial solutions for people who want to own their own home, grow their own businesses and save for the future.

"It is also a fundamental next step on our journey toward IPO."

Responding to an emailed enquiry from Sky News, Mr Ross said his "practice has always been not to comment on rumours of transactions involving my investments".

Atom Bank declined to comment.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
×