News Videos
International Edition


September 25, 2017

Breaking News, World News and Taiwan News.
About Us
Contact Us

Virgin Money leads the pack in chase to buy up 316 RBS branches

LONDON--Virgin Money has emerged as a frontrunner in a small field of potential suitors to buy 316 branches from majority state-owned Royal Bank of Scotland, after Santander pulled out of a deal on Friday.

The collapse of the sale was a major blow to RBS, coming at a critical juncture in its recovery plan and it is now likely to have to accept a price well under the 1.65 billion pounds (US$2.65 billion) agreed with Santander.

Shares in RBS, which is 82 percent owned by the British taxpayers, were down 0.9 percent in early Monday trading. Shares in Santander edged up 0.1 percent.

"RBS now has only 13 months to find another buyer or float the business. Either way, we expect the revised price to be significantly lower," said Shailesh Raikundlia, analyst at Espirito Santo, who viewed the breakdown of the deal as positive news for Santander.

Santander's retreat will save it some capital and avoid a big increase in its UK loan book and exposure at a time of strain in its domestic market and scrutiny of its capital and funding. Raikundlia said it was positive for the Spanish bank.

"The price set in Aug 2010 looks somewhat expensive now, the UK macro environment doesn't look appealing in the medium term and capital preservation ranks as a higher priority," he said.

Although Richard Branson's Virgin Money has emerged as a possible alternative bidder, RBS faces a tough task to clinch a sale by a 2013 deadline.

Sources close to the matter told Reuters that RBS had received interest from Virgin Money, which lost out to Santander in the original auction, and others since Friday. However, the list of obvious rival bidders is short.

U.S. private equity firm JC Flowers is interested in a potential bid, with the firm keen to expand its small regional lender One Savings Bank, the Financial Times reported.

NBNK, the venture set up to buy UK banking assets by former Lloyd's of London insurance head Peter Levene, is being wound up after losing out to the Co-op in a battle to buy more than 600 branches from Lloyds Banking Group and the chances of it reversing that process looked slim after its former head Gary Hoffman was on Monday named CEO of Hastings Insurance.

Advertise  |   RSS Feed  |   About Us  |   Contact Us
Home  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |  
Arts & Leisure  |   Health  |   Editorial  |   Commentary Travel  |   Movies  |   Guide Post  |   Terms of Use  |  
  chinapost search