Challenger bank Atom could merge with a firm belonging to a former senior member of Donald Trump's Cabinet, listing it on the New York Stock Exchange, it has been reported.
The Durham-based bank is said to be in talks with a special purpose vehicle set up by Mr Trump's Secretary of Commerce and former Virgin Money investor Wilbur Ross, according to Sky News.
Discussions are said to be at an advanced stage with Ross Acquisition Corp II - a special purpose acquisition company belonging to billionaire Mr Wilbur which launched on the New York Stock Exchange in March last year with an initial public offering of $300m.
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It is thought that if talks are successful, it could take six months to complete a deal.
Mr Ross is a prominent investor via his private equity firm WL Ross & Co, which owned a 21% stake in Virgin Money before selling it in 2016, making £550m. He was Secretary of Commerce in Donald Trump's administration between 2017 and 2021.
In February, Atom announced it had raised £75m from its two largest shareholders, Spanish banking group BBVA and London-based investors Toscafund. At the time chief executive Mark Mullen said the bank was moving into profitability and planning an IPO process to take place next year.
In 2021 Atom passed £3bn of mortgage completions, with applications for its digital loans peaking at £315m in the third quarter. Its lending to small businesses also surpassed £1bn during 2021.
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At the time of the £75m raise, Mr Mullen said: “It has been a year of excellent progress for Atom. We’ve achieved a number of important financial milestones, maintained our excellent reputation with our customers and with the introduction of our shorter 4-day working week (with no loss of pay), we’re pioneering the future of work.
“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 real competition for people who want to own their own home, grow their own businesses and - at a time of rapidly rising costs - save for the future. It is also a fundamental next step on our journey toward IPO.”
Atom Bank has been contacted for comment.