NAB announced a strategic review of the banks following increasingly difficult trading due to the poor performance of the UK economy.
NBNK is a financial investment company formed by Lord Levene and a consortium of senior business figures with the aim of building a large UK retail bank primarily through the acquisition of other banks.
The company appointed Gary Hoffman as chief executive officer after he left as boss of Northern Rock prior to the company making a bid for the mutual lender which was eventually sold to Virgin Money.
The Scotsman reported NBNK Investments, which lost out in the Project Verde auction for Lloyds’ 632 branches, is now in talks with NAB about acquiring the banks.
A source for The Scotsman close to NBNK said: “NAB UK is the one clearly available acquisition target for NBNK in the UK. Clydesdale Bank and Yorkshire Bank need to have their rightful place in the UK financial services landscape which NBNK could achieve.
“They [NAB] have announced a strategic review of the UK business. NBNK will look at it. What else would they be doing? They would be in pole position. It’s difficult to see other domestic bidders given possible regulatory complications.”
A source for Mortgage Introducer said: “Hoffman was brought in to build a rival to Britain’s big five high street banks. With the failure of Project Verde and the acquisition of Northern Rock, it makes good sense that he and NBNK would now pursue Clydesdale and Yorkshire Banks following the announcement that NAB are conducting a strategic review.”
