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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
