Clydesdale eyes RBS subsidiary
(25 October 2016 – United Kingdom) National Australia’s Bank’s UK spin-off, Clydesdale Bank is in the process of acquiring the Royal Bank of Scotland’s (RBS) subsidiary Williams and Glyn.
Clysdale, which is listed on both the London and Australian stock exchanges, said: “The board can confirm that the company has engaged in discussions with RBS and has made a preliminary, non-binding proposal to RBS in relation to its Williams and Glyn operations.
“This engagement is ongoing and there can be no certainty that any transaction will occur, nor as to the terms on which any transaction might be concluded.”
Reports claim RBS may sell the subsidiary for less than a current valuation of around £1.3 billion (A$2 billion) valuation after a prolonged process.
RBS confirmed that the group would divest itself of Williams and Glyn by the end of next year as part of an agreement when it was bailed out by the UK government during the 2008 Global Financial Crisis.
Clydesdale chief David Duffy has previously said the bank would seek out acquisition opportunities following should it deliver on targets and earn the “right” from investors to “have a conversation later about consolidation.”
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