RBS sale of 316 branches to Santander collapses
Posted: Sat Oct 13, 2012 11:48 amRoyal 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."
