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Santander pulls out of deal for UK RBS branches

Associated Press Modified: October 12, 2012 at 5:02 pm •  Published: October 12, 2012

Santander said it decided to pull out of the deal after it became apparent that a revised deadline for the deal to be completed would not be achieved. It told RBS it was not willing to agree a further extension to that deadline, the bank added.

The sale was originally scheduled to be completed in 2011 but later delayed.

"Our guiding principle throughout this transaction has been a seamless journey for customers — which requires the business to be delivered to Santander UK by RBS in a steady state," Santander U.K. chief executive Ana Botin said. "We have concluded that given delays, it is not possible to complete this within a reasonable timeframe."

RBS said it would continue to work on fulfilling its obligations to the European Commission and pledged that Santander's decision to pull out would not impact service to customers.