Rumours in UK regarding NAB’s Lloyds talks
(7 September 2011 – Global) Press reports from the United Kingdom have said National Australia Bank (NAB) is talking to a private equity partner, NBNK - run by Peter Levene, about a possible purchase of Lloyds branches.
NAB is playing down the reports but has long said all options are on the table.
The speculation surrounding NAB comes as analysts comb through the new APRA rules as the banking regulator moves to marry its guidelines with the international standards under Basel III.
European banks have delayed adoption of Basel III because of their capital problems.
Given it has an existing bank platform in the UK, NAB assets are highly sought after by parties interested in boosting their operations and/or taking advantage of the forced sales in the UK.
It is understood that NAB is yet to sign an exclusive arrangement with any potential partner, including Levene.
The Lloyds branches for sale are said to be worth about A$3.1 billion, against the perceived market value of NAB's operation of roughly A$4 billion.
NAB's business is, however, highly prized because it would cost about A$1.5 billion to set up from scratch in the UK given tougher regulatory rules.
The speculation surrounding NAB comes as analysts comb through the new APRA rules as the banking regulator moves to marry its guidelines with the international standards under Basel III.
European banks have delayed adoption of Basel III because of their capital problems.
Given it has an existing bank platform in the UK, NAB assets are highly sought after by parties interested in boosting their operations and/or taking advantage of the forced sales in the UK.
It is understood that NAB is yet to sign an exclusive arrangement with any potential partner, including Levene.
The Lloyds branches for sale are said to be worth about A$3.1 billion, against the perceived market value of NAB's operation of roughly A$4 billion.
NAB's business is, however, highly prized because it would cost about A$1.5 billion to set up from scratch in the UK given tougher regulatory rules.
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