RBS Asia deal announcement looking 'unlikely' by Thursday

Feb 22, 2012

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Royal Bank of Scotland's long-awaited deal to secure a buyer for its Asian business has hit a bump in the road, meaning the deal may not be unveiled on Thursday as has been widely speculated, people knowledgeable of the matter said.

It had been expected that RBS would announce a deal with either CIMB Group, a Kuala Lumpur-based firm, or China International Capital, the country's largest investment bank.

Thus, the lender is reportedly still hashing out the finer points.

One source, as reported by the Wall Street Journal, said that there is a problem over RBS's securities-trading license in South Korea, which RBS is reluctant to sell because it is considered to be difficult to dip in and out of Korea's market.

Hence, the deal is now said to be looking 'unlikely'.

RBS, which has operations in 11 countries in Asia, had wanted to unveil the deal ahead of or alongside its full-year results.

An RBS spokeswoman told WSJ: "RBS remains in active discussions with other parties interested in acquiring various parts of the businesses we have identified for exit in Asia. Further updates will be provided based on developments."

NR

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