NAB Feels No Pressure Over UK Expansion

Post by Sharat on June 7, 2010 · Under Business News, Company News, International Business News, Mergers & Acquistions, banking · Comment 

Australian banking major, National Australia Bank, says it is more than happy with its current position in the United Kingdom, and feels no particular pressure to be part of the consolidation that is occurring within the banking system there.

According to a report in Britain’s Sunday Times, NAB has dropped out of the running for the acquisition of a 318 strong branch network put up for sale by troubled lender RBS. The report then suggested that NAB would exit the UK altogether and put its two UK lenders, Clydesdale and Yorkshire Bank’s up for sale.

The report, which did not cite any sources also said that Spain’s Banco Bilbao Vizcaya Argentaria is considering a takeover of NAB’s British assets that could value the business at 2 billion pounds ($3.5bn).

Responding to the report, NAB issued a statement through a spokesperson on Monday clarifying its position: “We wouldn’t comment on the speculation but we would reiterate, as we’ve said before, that we are comfortable with the status quo and aren’t under any pressure to participate in consolidation,” the spokesman said.
The spokesman also declined to confirm NAB’s withdrawal from the race for RBS’s branches.

The Wall Street Journal in its report citing another unnamed source said that NAB had exited the race to acquire the branch network, which would mean the leading bidder remaining in the race is Banco Santander. BBVA also continues to remain in the running, though RBS had asked the lender to make some improvements to its original bid.

According to the WSJ’s source, NAB withdrew from the race over concerns about expanding in the UK during an uncertain macroeconomic environment.

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