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.