NAB May Be Possible Bidder For Northern Rock

Post by Sharat on January 4, 2010 · Under Business News, Company News, Mergers & Acquistions, banking · Comment

A report in British newspaper The Observer suggests that Australian banking major National Australia Bank (NAB) is preparing a possible bid for the acquisition of nationalized UK lender Northern Rock.

The report, which failed to cite its sources suggested that the Melbourne based lender was considering a number of investment banks from which it will choose one to act as an advisor for a possible bid.

The report went to say that NAB had already looked at presentations given by Credit Suisse, Morgan Stanley, Lazard and Citigroup and is preparing itself for a major round of consolidation in the British banking sector that is widely expected to occur this year.

Virgin Money and Spanish lender BBVA are also thought to be very interested in the healthy portion of Northern Rock’s business.

The Observer also added that NAB may also emerge as a bidder for hundreds of branches being jettisoned by troubled UK High Street banks RBS and Lloyds.

Compare Australian Credit Card Deals