UK banking group Royal Bank of Scotland (RBS) has announced a deal to sell part of its Asian banking unit to the Australia and New Zealand Banking Group (ANZ) for A$687 million (£340 million).
The sale involves RBSÔÇÖs retail, wealth and commercial banking operations in Taiwan, Hong Kong, Singapore and Indonesia and also includes its institutional businesses in Taiwan, the Philippines and Vietnam.
The sale marks another step in RBSÔÇÖs strategy to exit from or condense its operations in 36 countries across the world. This includes its operations in India and China, which UK-based Standard Chartered is reported to be discussing with the bank. RBS is also said to be in talks over the sale of its Malaysian unit.
ÔÇ£RBS remains in advanced discussions with bidders for the remaining assets it has decided to sell in Asia and will make further announcements, as appropriate, in due course,ÔÇØ RBS said in a statement.
RBS has been selling assets to raise cash since it posted massive losses at the height of the credit crisis last year, prompting a government bailout.
The acquisition will give ANZ, which is AustraliaÔÇÖs fourth biggest bank, access to 54 branches serving around two million clients across the region, taking it closer to its goal of deriving 20 per cent of its revenue from Asia by 2012.
The deal highlights the current ability of Australian banks to buy assets cheaply from their struggling counterparts in the UK and the US.
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