CYBG, the holding company created after the NAB demerger, has confirmed that it is in discussions with the Royal Bank of Scotland (RBS) to acquire the latter’s Williams & Glyn business.

"The Board of CYBG can confirm that the Company has engaged in discussions with RBS and has made a preliminary non-binding proposal to RBS in relation to its Williams and Glyn operations," CYBG said in a statement.

The company however, clarified that there is no certainty that the deal will occur.

"A transaction will only be pursued if it is determined by the Board to be in the best interests of CYBG shareholders," CYBG added.

The bid by CYBG is the latest development in the sale of Williams & Glyn, which has a network of over 300 branches. The deal previously faced various setbacks, with the key hurdle being setting up a separate IT system for the network.

Spanish lender Santander abandoning talks to buy the unit last month due to a disagreement over the price. RBS has a deadline of 2017 for divesting Williams & Glyn, as a condition of the bank’s bailout at the height of the financial crisis in 2008.