RBS hits problem over sale

Jul 23 2008 by Peter McCusker, The Journal

ATTEMPTS by Royal Bank of Scotland to sell the Australian and New Zealand operations of recent acquisition ABN Amro have been dealt a blow.

National Australia Bank (NAB), which owns the Clydesdale and Yorkshire banks in the UK, said it was no longer involved in the sale process.

The announcement comes less than a fortnight after NAB was named as one of a number of parties interested in buying the ABN Amro assets, which were acquired by RBS amid the Dutch bank’s near £50bn takeover last year.

The ABN business, which specialises in investment and wholesale banking, is reported to be worth around 800m Australian dollars. Commonwealth Bank of Australia and Japan’s Nomura have also been linked.

RBS is also looking to offload its Churchill and Direct Line insurance business, but this was dealt a blow recently when one of the leading candidates pulled out of the running. Zurich’s withdrawal added to speculation that RBS may not meet the £7bn price tag hoped for by management.