National Australia Bank to Bid on Royal Bank of Scotland Branches

National Australia Bank (NAB) is expected to be one of three or more parties to lodge first-round offers tomorrow for 318 branches under auction by Royal Bank of Scotland (RBS). The sale is a result of billions of pounds in state aid given to RBS during the financial crisis. RBS is being forced to sell the branches and other assets as part of the deal. NAB, which owns Clydesdale and Yorkshire banks in Britain, is likely to face stiff competition from Spanish lender Banco Santander and Richard Branson's privately owned Virgin Money.

Key Takeaways:

• NAB is expected to lodge a first-round bid for 318 Royal Bank of Scotland branches.
• The sale is a result of state aid given to RBS during the financial crisis, and the bank is being forced to sell assets.
• NAB owns Clydesdale and Yorkshire banks in Britain and is looking to expand its business.
• Analysts are wary of NAB's expansion plans, citing a history of overpaying for acquisitions and failing to integrate businesses properly.
• Brian Johnson, CLSA analyst, has previously stated that NAB's history of making poor acquisition decisions is a concern.
• NAB has other acquisition targets, including a bid for the domestic and New Zealand operations of Axa Asia Pacific Holdings.
• The sale of RBS branches is happening amidst Britain's deepest recession since World War II, making the bid more challenging.

Statistics:

• 318 Royal Bank of Scotland branches are up for sale.
• RBS received billions of pounds in state aid during the financial crisis.
• NAB owns Clydesdale and Yorkshire banks in Britain.
• NAB is bidding $4.6 billion for the domestic and New Zealand operations of Axa Asia Pacific Holdings.

Sources:

• Reports in Britain
• Euclid Infotech Pvt. Ltd.
• An article from Syndicate.info, an Albawaba.com company.