Clydesdale & Yorkshire Banking Group has confirmed it has made a proposal to RBS to buy Williams & Glyn.
RBS has been tasked with divesting itself of Williams and Glyn by European regulators as part of the conditions of its £45 billion bailout by the UK government.
Initially RBS planned to spin the brand out itself, but revealed earlier this year it was unlikely to make the regulatory deadline of doing so by the end of 2017.
Subsequently RBS confirmed it was pursuing other alternatives, which included talking to Santander, though negotiations broke down last month, reportedly over the price tag for Williams & Glyn.Laith Khalaf, Senior Analyst, Hargreaves Lansdown:
"Williams & Glyn is a major millstone around the neck of RBS, and selling it on would allow the troubled bank to focus on its other problems, which are plentiful.
However the issue is always going to be the price tag set for the Williams & Glyn franchise. Brexit hasn’t exactly improved banking conditions in the UK, and everyone and their dog knows that RBS is a forced seller, which hardly makes for a compelling negotiating position.
The end result is RBS may have to accept less than it wants for Williams & Glyn, however compared to the scale of misconduct costs RBS is facing in the US, any haircut it takes on Williams and Glyn will probably look like loose change."
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