CYBG Makes Offer for RBS' Williams & Glyn Unit -- Update
October 25 2016 - 8:11PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--The parent of Clydesdale Bank and
Yorkshire Bank has made an offer to acquire Royal Bank of Scotland
Group PLC's Williams & Glyn unit, bidding for the consumer bank
in move to bolster its operations following this year's initial
public offering.
CYBG PLC, which was spun off this year by National Australia
Bank Ltd. and listed in London and Sydney, on Wednesday said it had
made a preliminary and non-binding proposal to RBS for the Williams
& Glyn operations. Talks were ongoing and there was no
certainty a deal would be concluded or on what terms a deal might
be agreed, it said in a statement to the Australian securities
exchange.
The company said its board had a duty to continually evaluate
all potential opportunities to enhance the business, but would only
seek out combinations that were in line with CYBG's strategic
objectives.
Following its government bailout, RBS is required under European
Union state aid rules to spin off 314 branches. These were bundled
under the Williams & Glyn brand, and RBS is required to unload
the business by the end of next year.
In August, RBS said it planned to sell the unit rather than
continue an expensive plan to list it. That decision came shortly
after RBS received an offer for Williams & Glyn from the U.K.
arm of Banco Santander, according to people familiar with the
offer, The Wall Street Journal reported.
CYBG floated in February after National Australia Bank handed
the bulk of its U.K. operation to its shares and launched an IPO
for the remainder. NAB bought Glasgow-based Clydesdale in 1987
before picking up Yorkshire Bank in 1990.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
October 25, 2016 19:56 ET (23:56 GMT)
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