News in today that Northern Rock branches will also be sold off in the same way that Lloyds branches are being sold.
Deutsche Bank is preparing the documents to help sell of Northern Rock and its old high street branches. There are 70 Northern Rock branches in the UK and most are in prime high street locations. The total package is expected to raise around £1.4 billion.
At the moment it is not guaranteed that the Northern Rock branches will be sold off, that is still up to George Osbourne decides on what action the government are going to take. It is expected that he will make a decision by the 17th June 2011.
Who is likely to bid for Northern Rock branches?
According the the Telegraph the following companies are likely to bid for parts of the Northern Rock business:
- JC Flowers – a New York private equity investment firm run by a former Goldman Sachs partner, J. Christopher Flowers
- Virgin Money – Run by the UK’s Richard Branson
- NBNK Investments plc – Lord Levene’s (chairman of Lloyd’s of London) investment company set up specifically to acquire UK banking assett.
- National Australia Bank – the 17th largest bank in the World and looking for a foothold in the UK
More on this in the new soon when the final decision has been made by the Treasury.