Partner Article

Would-be Rock suitors set for UK return

AN AMERICAN private equity firm which tried to buy Northern Rock in 2007 is reportedly circling British building societies once again following a major appointment.

Speculation is mounting that JC Flowers could launch an assault on the UK market after appointing John Goodfellow – former head of Skipton Building Society – to advise on the mutuals.

According to reports, sources close to JC Flowers denied yesterday that the appointment was linked to a bid for Skipton itself, but confirmed that the firm would be interested in consolidating the industry.

The sector is considered highly fragmented and ripe for consolidation, although this is also likely to concern policymakers who are eager to see increased competition on the high street.

Mr Goodfellow led Skipton, which has 850,000 members and £16bn of assets, between 1991 and 2008. Speaking over the weekend Mr Goodfellow said he had been appointed to, “help them understand the mutual sector.” He also denied that his job was specifically linked to a tilt at his former employer.

This was posted in Bdaily's Members' News section by Ruth Mitchell .