Talks between Royal Bank of Scotland (RBS) and GE Capital over the sale of the bank’s Lombard Vehicle Management have ended.
RBS put the business up for sale in June as part of the 84% state-owned bank’s disposal of non-core assets and GE Capital was immediately identified as a likely bidder.
However, talks between US-based GE Capital and RBS ended after the two parties failed to agree a price for the vehicle leasing business.
GE Capital was reported as being in contention for the acquisition of ING Car Lease, which was purchased by BMW’s vehicle leasing company Alphabet, and also linked to a bid for Masterlease in late 2010 which was bought by Investec and Leasedrive.
A spokesman for RBS said Lombard VM remains on the market and the bank is looking at new bidders and stressed reports the unit would be wound down are inaccurate.
The spokesman said: “RBS continues to explore options for the future of its Lombard Vehicle Management business as part of the Strategic Plan announced in 2009 to return RBS to standalone financial strength.”
A further non-core business, RBS Aviation Capital, is currently up for sale and GE Capital is widely reported to be interested in the Dublin-based aircraft leasing business.
GE Capital declined to comment.