Live Currency Rates
 
  Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Santander calls off 2 bn euro deal to buy RBS branches  Join our daily free Newsletter

MENAFN - AFP - 12/10/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - AFP) Spanish lender Santander on Friday pulled out of a 1.65 billion (2.65 billion, 2.05 billion euro) deal to buy 316 branches from Royal Bank of Scotland, in a blow to the state-rescued British bank.

Santander said it was withdrawing because it did not believe the banks could meet a deadline of February 2013, extended from the end of 2011, to complete the sale ordered by the European Commission in 2010 after RBS's state bailout.

"It is now apparent that this revised target will not be achieved," a Santander statement said.

"Santander ... is not willing to agree a further extension to that deadline. In that case, the agreement will automatically terminate in accordance with its terms and the transfer of the business to Santander UK will not take place."

Chief executive Ana Botin added that she did not believe the business could be tranferred in a "steady state" within a "reasonable timeframe".

The collapse of the deal, which was to include RBS-branded branches in England and Wales plus NatWest branches in Scotland, leaves troubled RBS searching for a new buyer and millions of customers uncertain of their accounts' future.

RBS said that 1.8 million retail customers were involved, while media reports said the deal included accounts of hundreds of thousands of small and medium-sized businesses. The price could have been adjusted on completion.

The bank was required to reduce its branch network as part of European Commission penalties after it received a 45.5-billion bailout amid the financial crisis. It faces a deadline of the end of 2013 to complete a sale.

RBS said it would "continue to work to fulfil its obligations to the European Commission", while chief executive Stephen Hester called the deal's collapse "disappointing, especially for the customers and staff involved".

"Much of the heavy lifting associated with a transfer has already been completed, including separating data for 1.8 million customers and putting in place a standalone management team," he added in a statement.

"RBS's strong progress in our restructuring plans means we can continue to provide a stable home for this business and its customers pending a further resolution."

The bank, which remains 81-percent owned by the British taxpayer, is also awaiting news of its fine for manipulation of the Libor interest rate after fellow lender Barclays was fined 450 million in the rate-rigging scandal.

RBS admitted in July it was implicated in manipulation of rates crucial to the operation of short-term financing and global markets, the subject of an international investigation.

The collapse of the Santander deal came a day after RBS lauched a partial flotation of its insurance subsidiary Direct Line Group on the London stock market ahead of a full sale of the unit by the end of 2014.

RBS raised at least 787 million (1.261 billion, 978 million euros) from the sale of around a third of Direct Line in an initial public offering (IPO).

The sale of Direct Line, which specialises in motor and home insurance, was also ordered by the European Commission following RBS's bailout.<


 






  MENA News Headlines
Apr 23 2014Omantel launches service package for youth ,MENAFN
(MENAFN) Omantel announced launching 'Ozone' plan, a new package designed especially for the youth. This comes with the company"s constant efforts to enhance the communication needs of its customers, ...

Apr 23 2014Dh154 billion for Arabtec projects ,Khaleej Times
(MENAFN - Khaleej Times) Arabtec will spend dh140 billion on building one million low-cost houses in egypt and dh14 billion on five mixed-use residential projects in abu dhabi and dubai its chief ...

Apr 23 2014?Titli? makers excited about Cannes selection ,Khaleej Times
(MENAFN - Khaleej Times) The movie about the badlands of delhi?s dystopic underbelly will be in competition as part of the un certain regard section of the 67th cannes film gala to be held may ...

Apr 23 2014Saudi- Yaroub Bashraheel: In search of peace ... underwater ,Arab News
(MENAFN - Arab News) You've heard of diving snorkeling and other water activities but rarely has anyone heard of free-diving. it's a form of diving underwater without the aid of any breathing ...

Apr 23 2014Saudi- Schneider highlights intelligent health care solutions at forum ,Arab News
(MENAFN - Arab News) Schneider electric a global specialist in energy management is set to showcase its leadership in intelligent health care solutions at the second saudi forum for planning and ...

Apr 23 2014Saudi- Divorcees can seek housing ,Arab News
(MENAFN - Arab News) The kingdom will accept applications from saudi divorced women and widows for financial and housing support said justice minister muhammad al-issa.al-issa called on applicants ...

Apr 23 2014Saudi- New passport office opens at Red Sea Mall ,Arab News
(MENAFN - Arab News) The passport department has opened a new office for citizens and residents at the red sea mall.gen. abdul rahman bin abdullah al-tuwairki deputy director general of the ...

Apr 23 2014Kowait- Police deportation powers curbed ,Arab Times
(MENAFN - Arab Times) Kuwait city april 3 (afp): kuwaiti police will no longer be able to deport expatriates without interior ministry approval under new rules published thursday after officers ...

Apr 23 2014Kowait- Amiri Diwan urges all off tape case ,Arab Times
(MENAFN - Arab Times)  kuwait city april 9 (agencies): the amiri diwan has called on everybody to steer clear of the controversial tape issue and let the public prosecution take the necessary ...

Apr 23 2014Saudi Savola Group revenue up 43 pct in Q1 ,MENAFN
(MENAFN) Saudi Arabia's Savola Group registered a 43 percent increase in profits in the first quarter, well over expectations of analysts, Arabian Business reported. According to a statement to ...

Apr 23 2014Dewa and GE explore collaboration opportunities ,Khaleej Times
(MENAFN - Khaleej Times) Saeed mohammed al tayer managing director and chief executive officer of the dubai electricity and water authority (dewa) recently received a ge delegation to explore ...

Apr 23 2014Local international companies come out in force ,Khaleej Times
(MENAFN - Khaleej Times) Cityscape abu dhabi has started showing stronger interest from property developers who have showcased their upcoming projects. the three-day realty show was opened by ...

Apr 23 2014Sale of Gate Towers penthouses launched ,Khaleej Times
(MENAFN - Khaleej Times) Aldar properties has launched the sale of 21 exclusive duplex penthouse apartments at gate towers the penthouse collection in shams abu dhabi on al reem island. one of ...

Apr 23 2014Kowait- New hospital to be ready by 2014 end ,Arab Times
(MENAFN - Arab Times) Kuwait city jan 14 (kuna): director of the 'mega projects 3' group at kuwait oil company (koc) yaqoub dashti said on tuesday that the new ahmadi hospital would be ready to ...

Apr 23 2014Seven tied for the lead in chess championships ,Khaleej Times
(MENAFN - Khaleej Times) Former champion sukandar grabs lead of asian continental women?s chess. former asian women’s champion wgm irene sukandar of indonesia (left) beat wim ni shiqun ...

Apr 23 2014Two suspects held for robbing pedestrians in Sharjah ,Khaleej Times
(MENAFN - Khaleej Times) The sharjah police on tuesday arrested two stateless citizens for allegedly robbing many persons posing as criminal investigation department (cid) officers. the suspects ...

Apr 23 2014Thousands of Emirati job-seekers flock to career fair ,Khaleej Times
(MENAFN - Khaleej Times) 160 companies at fair organised for uae nationals a career fair brought together thousands of emirati job seekers and recruiters on its first day. shaikh maktoum bin ...

Apr 23 2014ADCB profit grows 26% in first quarter ,Khaleej Times
(MENAFN - Khaleej Times) Abu dhabi commercial bank?s profit grew 26 per cent in the first quarter of the year to dh1. however net profit rose 22 per cent year-on-year. non-interest income was 24 ...

Apr 23 2014China emerges as Algeria's largest trade partner in Q1 ,MENAFN
(MENAFN) Official data show that China has emerged as Algeria's largest supplier of goods in the first quarter of this year, Xinhua reported. The National Center for Information and Statistics in ...

Apr 23 2014UAE- Dewa and GE explore collaboration opportunities ,Khaleej Times
(MENAFN - Khaleej Times) Saeed mohammed al tayer managing director and chief executive officer of the dubai electricity and water authority (dewa) recently received a ge delegation to explore ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help