Skip to main content
  • Register
  • Help
  • Contact us
  • Log out of your HL account

Clydesdale bids for Williams & Glyn

Laith Khalaf | 26 October 2016 | A A A

You’re about to read press releases, which we’ve written for media use only. They’re not intended for individual investors. They’re not personal advice and don’t include any recommendations.

No recommendation

You’re about to read press releases, which we’ve written for media use only. They’re not intended for individual investors. They’re not personal advice and don’t include any recommendations.

Media contact:

Laith Khalaf

Senior Analyst

Direct Line: 0117 980 9866

Mobile: 07977570820

Email: laith.khalaf@hl.co.uk

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."

NOTES TO EDITORS

Globelynx and ISDN ready

Hargreaves Lansdown is equipped with a live in-house broadcast camera via the Globelynx network and has an ISDN line available for radio interviews - 0117 934 9006. To arrange an interview with a Hargreaves Lansdown spokesperson please contact the person you wish to speak to directly using the contact details above, or call Globelynx on 0207 963 7060 or email globelynx@globelynx.com.


You’re about to read press releases, which we’ve written for media use only. They’re not intended for individual investors. They’re not personal advice and don’t include any recommendations.