RBS sale of Australasian business suffers setback

by Gill Montia

Story link: RBS sale of Australasian business suffers setback

Royal Bank of Scotland’s (RBS) efforts to raise capital by selling off its non-core businesses have suffered yet another setback.

National Australia Bank has announced that it is withdrawing its interest in the Australian and New Zealand operations of ABN Amro, which were acquired by RBS last year.

The business employs around 750 staff and specialises in investment and wholesale banking. It is estimated to be worth £390.8 million.

Despite its successful £12 billion rights issue, RBS is looking to raise additional cash to bolster its balance sheet and offset credit crunch writedowns.

So far it has sold Angel Trains, its rolling stock business, for £3.6 billion but the sale of its insurance unit, which comprises the Churchill, Direct Line, Privilege, UKI and NIG brands, fell apart earlier this month when Zurich Financial Services Group confirmed that it was withdrawing from any further discussion.

According to a report in The Times, Commonwealth Bank of Australia and Nomura Holdings of Japan remain contenders for the ABN business.