RBS and MCB deal lapses: MCB fails to get regulatory approval from SBP
A purchase deal between MCB Bank and Royal Bank of Scotland lapsed as the central bank refused to issue No Objection Certificate (NOC) to the management of MCB bank over its denial to pursue SBP’s rules and regulations.
An official statement of MCB said here on Friday, “The Sales Purchase Agreement (SPA) with RBS said that if the necessary “Regulatory Approvals” are not obtained and closing of the transaction has not occurred on or by 31st December 2009 then the SPA shall lapse.” “Some of the regulatory approvals” were not accorded therefore closing did not occur by December 31, 2009 and accordingly the SPA stands lapsed in accordance with the terms thereof,” the statement said.
An official of the Royal Bank of Scotland (RBS) said that their negotiation with MCB is confidential, therefore, we will not comment on it.
“The RBS is still open for sale,” the official said as the UK-based management has planned to sell its assets globally as it tries to exit up to 36 countries.”
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