Clydesdale set to bid for Williams & Glyn

CLYDESDALE Bank has launched a bid to buy the Williams & Glyn brand from the Royal Bank of Scotland, just days before RBS is expected to announce losses of more than £200 million.

The Glasgow-based company has made a preliminary “non-binding” proposal following the RBS’s recent failure to sell the company to Santander.

A Clydesdale spokesman said: “A transaction will only be pursued if it is determined by the board to be in the best interests of shareholders. We have been clear there is interest in the business and this remains the case.”

RBS had to use the Williams & Glyn name, which dates to 1970, for some branches after it was required to divest itself of parts of its business by the EU.

The EU deemed the Government’s 84 per cent stake following the 2008 banking crisis was state aid.

Williams & Glyn appears on hundreds of former RBS branches in England and Wales.

The bid is the latest twist in a sevenyear sale process that has suffered multiple delays and setbacks and has cost RBS at least £1.5 billion.

Santander previously launched attempts to buy Williams & Glyn, but dropped out of talks because of a disagreement over the price.

RBS is meant to divest the 300-branch business by the end of next year, but it is reportedly expected to tell the markets this deadline will be missed due to complications removing IT systems.

The Williams & Glyn business is valued at around £1.3bn, but analysts expect it to be sold for less.

RBS will issue third-quarter earnings on Friday, with analysts predicting it will record a loss of £231m.