The Royal Bank of Scotland has roped in Swiss bank, UBS to organize the formation of 316 RBS branches into a new high street bank following the withdrawal of Santander from a deal to sell the brnaches in the previous month.
UBS had organized the original deal to sell 316 RBS branches that comes with 1.8m customers and close to 250,000 business accounts. However, Santander pulled out of the deal in the previous month due to series of delays. The European Commission has asked the RBS to sell all the branches by 2013 and after the pulling out of Santander, the bank has only one year to find a new buyer for the branches.
RBS has asked the UBS to prepare the branches for a possible sale offer as well as an IPO. The company will select he option with a better market price and will drop the other option. Nationwide Building Society and US private equity firms JC Flowers are leading to acquire the branches from RBS.
RBS had reportedly approached Virgin Money, which had earlier indicated that it is welcome to expansion opportunities. However, Sir Richard Branson has responded in a way that indicates that the company is not interested in the acquisition of the branches.