Santander leads race for RBS’ Williams & Glyn’s brand
09 Mar 2010
Spanish banking major Santander is seen as a frontrunner in buying Royal Bank of Scotland's (RBS) Williams & Glyn's branch network with Richard Branson's Virgin Money and National Australia Bank (NAB) close on the heels.
Spain's second largest bank BBVA is also in the running, according to reports.
RBS, which is which is 84-per cent owned by the UK government, was ordered to sell the branches by the European Commission as a punishment for accepting state aid (See: RBS to sell Williams & Glyn's to quell EU competition concerns).
The competition commissioner is also forcing Lloyds Banking Group, another recipient of state aid, to sell parts of its businesses.
RBS has set a deadline of the first week of April for initial bids, but Stephen Hester, its chief executive, has emphasised that the bank has until 2013 to do the deal and that it could be delayed if a good enough offer were not put forward, The Times reported yesterday.
According to analysts, the potential buyer would have to cough up £4 billion as the successful bidder must have to pay the emergency funding provided to the bank by the British central bank, which is currently keeping the business going.