The Royal Bank of Scotland (RBS) is selling 318 branches and associated assets to Santander UK for a total of £1.65 bn (EUR 1.9 bn). RBS said in a statement on Wednesday the sale reflects a £350 mln premium to net assets. The transaction is expected to be completed by December 2011.
The Royal Bank of Scotland (RBS) is selling 318 branches and associated assets to Santander UK for a total of £1.65 bn (EUR 1.9 bn). RBS said in a statement on Wednesday the sale reflects a £350 mln premium to net assets. The transaction is expected to be completed by December 2011.
The sale comprises 311 Royal Bank of Scotland branded branches in England and Wales; seven NatWest branded branches in Scotland; the retail and SME customer accounts attached to these branches; the Direct SME business; and certain mid-corporate businesses. RBS did not give a value for the real estate element of the deal.
RBS Chief Executive Stephen Hester said: 'This is an important milestone in our restructuring work and complements the significant momentum behind our recovery plan overall. The Bank is becoming stronger, which allows an increased focus on serving ongoing customers and improving commercial success; all a pre-requisite for the profitable realisation of taxpayers' stake in RBS'.
