Shawbrook Group has made an early-stage approach to Starling Bank about a potential £5 billion merger, as it explores alternatives to a sluggish UK stock market for listing. The move, made in the past two months, was informal and lacked detailed terms. While there are no active talks currently, sources suggest Shawbrook may return with a formal offer.

Backed by private equity firms BC Partners and Pollen Street Capital, Shawbrook’s renewed interest in Starling signals a potential wave of consolidation among mid-sized UK lenders. This is not the first time Shawbrook has sounded out Starling, though prospects for a deal remain uncertain.