On 12 January 2012, RBS announced its decision to exit its cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses as part of changes to the bank's wholesale banking operations.
RBS today announces that it has agreed to sell to CIMB its:
Cash Equities businesses in Australia (excluding the interest in RBS Morgans), China, Hong Kong, India and Taiwan; including the cash equities sales desks in the US and UK and;
Equity Capital Markets and Mergers & Acquisition businesses in Australia and China (excluding activities carried out by Hua Ying Securities), Hong Kong, India, Indonesia, Malaysia, Singapore, Taiwan and Thailand.
The principal benefit to RBS of the sale is to mitigate partially the shutdown costs otherwise associated with these businesses. The cash consideration, based on net asset values, is expected to be circa £75m. The transaction will complete by jurisdiction with the final completion expected to occur during Q4 2012. In certain jurisdictions, completion of the transaction is subject to regulatory conditions precedent. RBS will work closely with CIMB and existing clients of the sale businesses to ensure a smooth transition of staff, mandates and accounts, to the satisfaction of clients.
In Asia Pacific, RBS will maintain leading positions in debt financing, risk management and transaction services in the 11 countries where it currently operates.
"We are pleased to reach agreement with CIMB on the transfer of these businesses over the course of 2012. With this transaction we have now completed the sales process for various elements of the businesses we designated for exit in January."
Bruce Van Saun, RBS Group Finance Director
Group Investor Relations
+44 (0)207 672 1758
Michael Strachan and Allan Watt
Group Media Relations RBS Communication and Marketing Asia Pacific
+44 (0)131 523 4205 +852 39613355 (office). +852 6773 8715 (mobile)
RBS’s wholesale business will be retaining its international footprint in 38 countries to ensure that it can serve customers' needs globally. We believe that despite current challenges to the sector, wholesale banking services play a central role in supporting cross border trade and capital flows, financing requirements and risk management and we remain committed to this business.
The Markets business will maintain its focus on fixed income, with strong positions in debt capital raising, securitisation, risk management, foreign exchange and rates. It will serve the corporate and institutional clients of all Group businesses. We intend to retain our leading investor products business internationally in equity and fixed income derivatives.
International Banking provides clients with 'one-stop shop' access to our debt financing, risk management and payments services.
In Asia Pacific, RBS will maintain leading positions in debt financing, risk management and transaction service in the 11 countries where we currently operate.