Royal Bank of Scotland’s planned sale of 316 branches to Santander collapses, with the Spanish bank saying the deal could not be agreed on time. Royal Bank of Scotland’s proposed sale of 316 branches and other interests to Santander has collapsed.
The Spanish bank pulled the plug on the sale, saying that the already-delayed deal could not be completed by the revised deadline.
RBS chief executive Stephen Hester said the collapse was “disappointing” and that a new buyer would be sought.
The disposal was ordered by the European Commission in return for UK government’s £45bn rescue of the bank.
RBS had been working on the sale for more than two years. The UK bank struck a preliminary deal with Santander to sell the branches and the business of 1.8 million customers in August 2010. However, completion has been delayed several times.
In a statement released late on Friday, Mr Hester said: “It is of course disappointing that Santander decided to pull out of this transaction, especially for the customers and staff involved.
“RBS will commence a new process of disposal and will provide a further update on this in due course.”
‘Heavy lifting’The assets being sold included the RBS branch business in England and Wales, and the NatWest branch business in Scotland, plus some small business and other corporate lending interests.Stephen Hester said the collapse was “disappointing”.
Continue reading the main story”Start Quote
Chancellor promises to “rebuild Britain” in first Budget 
Vernon Building Society completes £150,000 refurbishment of Poynton branch 
Romiley Italian restaurant secures American Express grant funding