NBNK loses out to rival Virgin

NBNK Investments missed out on its secondary acquisition target yesterday, losing out to Virgin on Northern Rock. But it is still in the process of trying to buy 632 Lloyds branches and the UK business of National Australia Bank.

The outcome prompted questions about where NBNK will find the market share it needs to satisfy the Vickers Commission’s demand that the buyer of Lloyds’ branches have a six per cent share of the current account market. However, those close to the deal say that the demand could fall by the wayside in favour of getting any sale done.