CHINA Development Bank and Japan’s Sumitomo Mitsui Financial Group are slugging it out in the final days of an auction for Royal Bank of Scotland’s aircraft leasing business in a deal that could fetch up to $7.5bn (£4.8bn), a source with direct knowledge of the matter said yesterday.
RBS, 83 per cent-owned by the British government, is shedding RBS Aviation Capital as part of efforts to pay back a 2008 bailout.
The RBS Aviation auction reaches its final stages as RBS begins a larger process to pare back the size of the bank, including scaling back its investment banking arm.
For the RBS Aviation auction, a decision on the winner is expected by early next week, said the source, who was not authorised to speak to the media, with a sale price in a range of $7.3bn to $7.5bn.
A second source said US bank Wells Fargo was also still involved in the auction. RBS declined to comment.