Speculation resurfaced in the London media overnight of talks involving the merger of National Australia Bank's operations in the UK with those of one of the investment funds seeking to buy one or both of the retail banking franchises being sold by Lloyds Banking Group and Northern Rock.
The Daily Telegraph reported that NAB "will merge" its Clydesdale Bank business with the NBNK investment vehicle established by Peter Levene, chair of Lloyds, the leader in the insurance market.
In an updated version published this morning the
Daily Telegraph reported that NBNK "is discussing the takeover" of the banking assets of NAB in Britain.
The newspaper reported that the combined NBNK-NAB entity will "table a combined offer for the Lloyds branches as well as nationalised lender Northern Rock."
In a follow up article the
Financial Times reported that NBNK is "buying" NAB's banking business in Britain.
NBNK is expected to announce that it is in talks about a potential acquisition as early as tonight, the FT reported.
Lloyds must sell around 630 branches, plus a customer list equal to around five per cent of its current accounts to meet regulatory requirements (though the scope of the assets for sale may have to be widened).