RBS sale of 316 branches to Santander collapses

Royal Bank of Scotland's proposed sale of 316 branches and other interests to Santander has collapsed.



The Spanish bank pulled the plug on the sale, saying that the already-delayed deal could not be completed by the revised deadline.

RBS chief executive Stephen Hester said the collapse was "disappointing" and that a new buyer would be sought.

The disposal was ordered by the European Commission in return for UK government's £45bn rescue of the bank.

RBS had been working on the sale for more than two years. The UK bank struck a preliminary deal with Santander to sell the branches and the business of 1.8 million customers in August 2010. However, completion has been delayed several times.

In a statement released late on Friday, Mr Hester said: "It is of course disappointing that Santander decided to pull out of this transaction, especially for the customers and staff involved.

"RBS will commence a new process of disposal and will provide a further update on this in due course."

Can't say I'd want an account with bank whose television commercials can't even pronounce the name of Shrewsbury correctly

Anyway Spain is totally bankrupt, how can they afford to buy a British bank?