Deutsche Bank considers acquisition of RBS Greek shipping business

Deutsche Bank is reportedly considering the acquisition of RBS's $3bn Greek shipping portfolio. The bank faces competition for the acquisition from China Merchants and at least one Japanese bank despite reports suggesting that RBS is struggling to offload its business.

Deutsche Bank has expressed an interest in buying part or all of Royal Bank of Scotland Group’s (LON:RBS) $3-billion (£2.3 billion) Greek shipping portfolio, Sky News has revealed. The report follows news that the bailed-out lender is facing a setback over the proposed sale of the business in the wake of the UK’s surprise vote to leave the European Union.



RBS’ share price has inched lower in London in today’s session, having shed 0.16 percent to 181.70p as of 14:27 BST. The group’s shares are slightly underperforming the benchmark FTSE 100 index which has climbed marginally into positive territory and is currently 0.07 percent better off at 6,685.17 points. The group’s shares have lost just under 40 percent of their value in the year-to-date, as compared with about a seven-percent rise in the Footsie.



Sky News reported yesterday that Deutsche Bank had emerged as a surprise contender for RBS’ Greek shipping business. City insiders told the newswire that the German lender was competing with China Merchants and at least one Japanese bank to acquire the FTSE 100 group’s business.

The news comes after Reuters reported earlier this week that the UK lender was facing setbacks over the proposed sale of its Greek business in the wake of the EU referendum.

RBS, bailed out by the UK government during the financial crisis, has been looking to offload the business as part of its strategy to trim non-core assets and focus on its operations at home as it looks to return to profitability.

“RBS Shipping is a strong franchise with one of the most significant portfolios in European finance,” a spokesman for the London-listed lender said in February, as quoted by Sky News. “In light of our wider strategy to create a simpler, stronger, and more sustainable bank, better aligned to the needs of our customers in the UK and Western Europe, we are actively exploring alternative strategic options for our shipping business.”

As of 15:04 BST, Wednesday, 13 July, Royal Bank of Scotland Group share price is 180.70p.

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