National Australia Bank (NAB) will not bid to acquire 630 branches of Lloyds Banking Group in U.K., Reuters reports. The bank is backing out due to the high price of $4.9 billion being demanded and a funding shortfall.
The Australian lender will resume the deal if the price is reduced by at least one fifth and if Lloyds takes over some loans to decrease the $25 billion funding gap between loans and deposits. NBNK, Co-Operative Bank and Virgin Money and Resolution are also considering a bid.
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