Yorkshire Bank group makes a bid for Williams & Glyn
AFTER a seven-year sale process, RBS is a step closer to selling off its Williams & Glyn banking arm after Yorkshire and Clydesdale Banking Group made an offer for the business.
CYBG confirmed that it was engaged in discussions with RBS and has made a non-binding proposal to the bank in relation to its Williams & Glyn operations.
Only last month a deal for the 314 branches of Williams & Glyn with Santander fell through for the second time, according to the Financial Times.
If RBS boss Ross McEwan misses the sales deadline of the end of 2017, then the sale process will be taken over by Brussels, through the appointment of a trustee,
RBS is being forced to sell by the European Commission as a condition of its £45bn bailout at the height of the financial crisis but has struggled to make it work.
It has even attempted to set Williams & Glyn up as an independent bank with its own internal structure, but had to scrap plans for a float. It has spent £1.4bn in its attempts to separate a new bank.
CYBG became independent following the demerger and IPO of the group in early 2016. It insisted it would only commit to a deal if it found that it was in line with strategic objectives and in the best interests of CYBG shareholders.
The banking group has also been under pressure, after its bill for mis selling PPI rose by £450m earlier this year. The total now stands at £2.1bn.
