National Australia Bank (NAB) has secured the green light from the Supreme Court of Victoria to spin off its UK business Clydesdale and Yorkshire banks (CYBG).
The move forms part of NAB’s strategy to concentrate on more profitable core businesses.
NAB acquired Yorkshire and Clydesdale in 1990 and 1987 respectively. The banks operate with a total of about 320 branches.
NAB said that it would demerge 75% of the UK subsidiary to its shareholders and float the remaining 25% to institutional investors.
NAB Group CEO Andrew Thorburn said: "The court’s approval today is the final significant step in the separation of NAB and CYBG into two independent corporate groups.
"The demerger allows each business to focus on improving performance in their home markets and on business priorities that will maximise value for their respective shareholders. Both companies can now look ahead to the future. NAB is now in a position to focus all its resources, attention and leadership on the markets most important for us-Australia and New Zealand."