RBS rejects £5bn bid from BC Partners and Apollo

RBS has decided to terminate the sales process for its UK insurance arm after rejecting a bid jointly put forward by BC Partners and Apollo Management, which valued the business at around £5bn.

RBS is thought to have considered the bid, which also included former Norwich Union chief Patrick Snowball, as not high enough. There were also concerns surrounding the structure of the deal, which would have left RBS with a large minority stake, as well as whether the bidders would have been able to get financing for the transaction.

RBS originally put the unit, which includes Direct Line, Churchill, Privilege and Green Flag, up for sale 10 months ago and was looking for a price of £7bn. In October, CVC Capital and Swiss Re teamed up to bid for a 51% stake in a deal which would have valued the whole business at £6bn, but this offer was also rejected.

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