Santander Sole Final Bidder For RBS' 318 UK Branches -Source

15th Jun 2010 09:13

By Patricia Kowsmann Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Spain's Banco Santander SA (STD) was the sole final bidder for Royal Bank of Scotland Group PLC's (RBS) 318 U.K. branches and is likely to enter into exclusive talks with the U.K. bank in the next few days, a person familiar with the situation said Tuesday. If negotiations move smoothly, the deal, worth around GBP1.8 billion, could close within weeks. Spanish peer Banco Bilbao Vizcaya Argentaria SA (BBVA) was the only other bank not to officially drop out of the race for the assets, but people familiar with the situation said it is using the RBS offer as an opportunity to get more details on the U.K. market, rather than being seriously interested. For Santander acquiring the RBS branches will increase its foothold in the country, where it now has a network of around 1,300 banks. According to people familiar with the situation, the bank first put in a bid of around GBP2 billion for the RBS assets, but lowered the offer after conducting due diligence in recent weeks. The 83%-government owned RBS received the largest state aid in the world following its near collapse during the financial crisis in 2008. The European Union has ordered it to cut market shares in some segments to make sure the bank isn't at a competitive advantage to peers that stayed independent. The branches up for sale are in England and Wales, along with NatWest branches in Scotland, and the accounts of some small and medium business customers across the U.K. Combined, they have GBP23.6 billion in assets and 6,000 employees. -By Patricia Kowsmann, Dow Jones Newswires. Tel +44(0)207-842-9295, [email protected] (END) Dow Jones Newswires June 15, 2010 04:13 ET (08:13 GMT)