RBS rejects China Dev. Bank bid
- By Yan Pei
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E-mail China.org.cn, February 1, 2012
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Royal Bank of Scotland (RBS) has rejects China Development Bank (CDB)'s bid to buy its aviation unit. [CFP] |
Royal Bank of Scotland (RBS) has turned down China Development Bank (CDB)'s offer to buy its aviation unit over concerns of the Chinese bank's ability to close the deal.
Scotland-based RBS sold its aviation arm RBS Aviation Capital to Sumitomo Mitsui Financial Group for US$7.3 billion, although CDB's bid was US$240 million higher.
According to people familiar with the deal, RBS's rejection was partly because its concerns that Chinese regulators may not approve the deal. Another concern was that CDB officials had rarely visited RBS Aviation Capital's headquarters. "The Chinese did not show up," a RBS spokesperson said.
CDB is one of the three Chinese banks which are mandated to lend in accordance with government policies.
China's business press carried the story above on Wednesday.
Contact the writer of this story at: yanp@china.org.cn.
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