Clydesdale and Yorkshire Bank owner CYBG said late on Monday that it notified Royal Bank of Scotland that it has withdrawn its preliminary non-binding proposal for, and ceased discussions relating to, the Williams & Glyn branch banking operations.
“As previously stated, the board of CYBG will continue to evaluate potential inorganic opportunities to enhance its business in line with the company’s strategic objectives,” said CYBG.
Last Friday, RBS said EU competition officials were considering an alternative plan that would replace the requirement for RBS to sell about 300 of its branches under a revived Williams & Glyn brand by December 31, 2017.
RBS had been ordered to divest the roughly 300 branches by the end of 2017 as a condition of European Commission rules for receiving a £45 billion UK government bailout during the financial crisis.
The UK Treasury said the alternative plan, if approved, “would help RBS resolve one of its most significant legacy issues which has held back the sale of the taxpayers’ stake.”
The UK taxpayer still owns 72% of RBS.
The new proposal calls on RBS to spend £750 million on alternative measures to encourage competition in UK business banking.