CYBG makes offer to RBS for Williams and Glyn

CYBG Plc has made a preliminary offer to RBS to purchase 300 Williams and Glyn branches, in a bid to bolster its UK offering and growth over the medium term.

Noting yesterday's press speculation, the Clydesdale & Yorkshire Bank parent company said it had a duty to continually evaluate potential opportunities to enhance its business and confirmed that it would evaluate combinations that were in line with its strategic objectives: 

"The Board of CYBG can confirm that the Company has engaged in discussions with RBS and has made a preliminary non-binding proposal to RBS in relation to its Williams and Glyn operations.

This engagement is ongoing and there can be no certainty that any transaction will occur, nor as to the terms on which any transaction might be concluded."

As a condition of its 2008 bailout, RBS needs to sell W&G by 31 December 2017 but the banking giant has struggled to secure a buyer so far as interested parties have been disuaded by the significant technological issue of separating out branches and clients from the rest of RBS.

The company said a transaction will only be pursued if it is in the best interests of CYBG shareholders.