National Australia Bank Limited (ASX:NAB) is considering a merger in the UK that could elevate it to one of Britain's largest lenders.
According to London's Daily Telegraph financial investment company NBNK is in talks to takeover NAB-owned Clydesdale Bank and Yorkshire Bank.
Despite speculation emerging last month that NAB itself had decided not to bid for Lloyds Banking Group, should the new banking major emerge they would reportedly launch a joint bid to acquire 632 branches from Lloyds.
Lloyds is reportedly now assessing bidders for the branches it must sell as part of a state aid deal from the European Commission. The deadline for second round bids is September 30, 2011.
The Daily Telegraph says a successful bid from NBNK and NAB UK would create a new bank with 971 branches and $61 billion in deposits.
In the first half of its 2011 financial year National Australia Bank recorded a net profit of $2.4 billion
