According to reports in the UK, Australian banking major National Australia Bank is resisting intense pressure to table a bit for 632 branches that have been put up for sale by Lloyds Banking Group.
Bidders for the Lloyds retail branch network were caught by surprise when it emerged that Lloyds chief executive Antonio Horta-Osario had set a snap deadline for an indicative bid for yesterday.
According to the Guardian, NAB is still a contender to buy the branch network, but has told Lloyds that it needs more time before submitting an opening bid. The Guardian reported that the timetable for the asset sale does allow for some flexibility.
NAB is widely seen as a strong contender to acquire the branch banking network that has been put up for sale by Lloyds as a result of EU competition rules following the lender having to bailed out by the British government with a $30 billion lifeline during the financial crisis.
NAB already operates two different brands in the UK, and well capitalized, has the necessary infrastructure, but only a 2 per cent market share. Thus the acquisition of the branch network makes strategic sense, since it would double market share over night and leave it with many more options.
Cameron Clyne, NAB’s chief executive declined to comment, and instead referred to a previous statement he made on its strategy for the UK.
“There is a lot of debate in the UK market at present about the future shape of the UK banking industry, with a common theme being that the UK market would benefit from more traditional banks and more competition,” Mr Clyne said at the time.
“This places our operations in a great position to capitalise on this sentiment. Our No 1 priority is and has always been to grow the business organically, but in this climate it is also only natural that we would look at other options available to us.”
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