Spanish bank could buy NAB’s assets
SPANISH banking giant BBVA is thought to be mulling a takeover bid for National Australia Bank’s UK business, following its withdrawal from the £2 billion auction of more than 300 Royal Bank of Scotland branches.
NAB, owner of Clydesdale and Yorkshire banks, has previously said that it sees itself as a platform for consolidation of the UK banking industry.
NAB chief executive Cameron Clyne has until now implied he saw NAB UK more as a consolidator of the sector rather than being one of the banks taken over.
However, it is thought Clyne may reconsider after the failure of the bank’s move on the RBS branches. Santander of Spain is thought to be the only remaining player in that auction. Analysts said NAB UK could fetch up to £2bn in a sale.
One analyst said: “BBVA would not be a contentious bidder for Clydesdale and Yorkshire banks. It has no presence in the UK and so would not trash NAB UK’s back office if it did acquire the assets. That would make it politically more palatable.”
It is understood that BBVA and NAB at one stage considered bidding jointly in the RBS auction.
Forming a joint venture in the UK is still thought to be one option, as is a partial stock market listing for NAB’s UK arm. But the possibility of a takeover by BBVA is gaining ground, as investment banks Morgan Stanley and Goldman Sachs advise NAB on its options for its UK arm.
NAB UK recently unveiled an 11 per cent jump in underlying interim profits, to £264 million, as average retail deposit volumes rose 12 per cent, to £22.5bn.
