NAB's UK asset sale 'set to fall through'

17 April 2012

National Australia Bank's (NAB) proposed sale of its assets in the UK could be on the verge of collapsing, it has emerged today (17 April).

NBNK Investments has been in talks with the group over the possibility of purchasing its Clydesdale and Yorkshire Banks arm - an operation with around 9,000 employees and more than 300 branches across Britain.

However, an insider has told Deal Journal Australia that the organisation has walked away from these negotiations on the grounds that NAB's valuation of this business is too high due to its expected pension deficits of hundreds of millions of pounds.

The source described the state of the Clydesdale and Yorkshire Banks as something of a "horror show" in the aftermath of the financial crisis, adding that "bank valuations have only continued to deteriorate in the UK" in recent times.

"On that basis a realistic price for that business is evidently below what they're expecting," they stated.

By Gary Cooper

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