Standard Chartered’s plans to purchase the Royal Bank of Scotland group’s assets in India, China and Malaysia, appear to have failed over the valuation of assets, a media report says.
“Talks between Standard Chartered PLC and Royal Bank of Scotland Group PLC for the sale of RBS’ assets in India, China and Malaysia seem to have failed,” the Wall Street Journal said quoting a person familiar with the matter.
“Standard Chartered bank was willing to pay USD 200 million to USD 250 million for the assets, but they (RBS) were looking for much more,” WSJ said citing the familiar source, who did not disclose how much RBS was asking for.
The daily further said that “Standard Chartered had set a deadline of Friday for RBS to respond to its offer, which it had not done yet. He also said chances of the deal happening now were ‘non-existent’”
The assets were part of RBS’ Asian businesses that were earmarked for disposal under the strategic plan of Chief Executive Stephen Hester.
Many of the Asian businesses were acquired by RBS when it bought part of Dutch bank ABN Amro Holding NV in 2007.
RBS already has wrapped up the sale of commercial and retail operations in Taiwan, Hong Kong, Singapore and several other countries to Australia and New Zealand Banking Group for USD 420 million, and RBS Pakistan to MCB Bank for USD 87 million.
