NAB May Make Bid For RBS Branches

Post by Sharat on January 11, 2010 · Under Business News, Company News, International Business News, Mergers & Acquistions, banking · Comment

The troubled British lender RBS has begun the auction process of more than 300 of its branches, allowing potential buyers until the month’s end to table a bid.

NAB, which owns two UK lenders the Clydesdale and Yorkshire bank, along with Spanish banking giant Santander are thought to be two potential bidders for the branch network, which is being sold under the Williams & Glyn’s brand name .

Investment bank UBS has been appointed to advise RBS on the sale of the network.

The sale process has been brought forward after keen interest was expressed from a large number of buyers as the consolidation process in British retail banking intensifies.

A document containing the details of the branches in the network that are being put up for sale by RBS has been widely circulated.

Last year, the European Commission demanded that RBS sell more than 300 of its branches as a consequence of receiving financial support from the British government.

The lender has also been ordered to divest its stake in its commodities trading joint venture with Sempra Energy called RBS Sempra. It is thought that Australian investment banking major Macquarie is keen on acquiring the stake.

The EU has also said that RBS must sell its global merchant payments operation and its insurance businesses.

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