Royal Scotland branches subject of bids by Branson and Santander
The forced sale of 318 branches of the Royal Bank of Scotland has attracted both the Spanish Bank Santander and Sir Richard Branson’s Virgin Money in the list of five bidders. Wilbur Ross, leading US investor, has backed the Virgin Money bid to be successful in the sale enforced by the European Union
Sir Richard Branson and the Spanish bank are among five bidders for the 318 RBS branches in EU forced sale. The two bidders were part of a collection of five who yesterday submitted indicative offers worth at least £1.5bn each for the 318 Royal Bank of Scotland branches being sold, as the latest hurdle to the restructuring of the UK high street banking network was cleared.
Shares in the Royal Bank of Scotland, based out of Edinburgh, rose as investors saw the latest announcement as a sign of further strengthening of the possibility of the sale. UK taxpayers hold a 70 per cent stake in the group.
The news is seen as being a confirmation that a genuine auction of the branches in question may finally be under way, after the EU imposed conditions on the government funding, set at a minimum of £54bn, committed to the rescue package.
Though no concrete changes are expected until the end of the year, the signals are that the national restructuring of the banking system may be making significant progress as fellow bank Lloyds has also place some 600 branches for sale while the government is still searching for buyers in the recently nationalised Northern Rock group.