/ 4 August 2010

Santander buys 318 Royal Bank of Scotland branches

Spanish bank Santander is buying 318 branches from government-controlled Royal Bank of Scotland (RBS) for £350-million plus the net value of the assets.

RBS said on Wednesday it was selling the branches — all but nine of them in England and Wales — to comply with European Union rules on state aid to businesses.

The full price of the sale won’t be known until closing late in 2011. RBS said the net value of the assets was £1,9-billion in the third quarter of last year, but that the figure was subject to significant fluctuations.

Santander is buying a business that posted an operating loss of £55-million last year. — Sapa-AP