National Australia Bank (NAB) has confirmed its intention to use some of the $2.75 billion earnings from the sale of its US subsidiary, Michigan National Corporation, to ABN Amro of the Netherlands to finance the expansion of its presence in the UK. NAB has already acquired both Clydesdale Bank and Yorkshire Bank and plans to merge them into a single entity.
NAB has a range of options for developing its UK interests further and will not necessarily seek to acquire a local firm.
One possibility is an asset swap with Bank of Scotland whereby NAB would exchange a share in Yorkshire and Clydesdale Banks for Bank of Scotland’s 55% holding in Bank of Western Australia. This would give NAB a presence on the London market through a dual listing.
