Banco Santander SA (SAN.MC) has pulled out of talks to buy Royal Bank of Scotland Group's (RBS.L) Williams & Glyn unit, the Financial Times reported on Tuesday, citing people familiar with the matter.
Santander dropped negotiations because of price disagreements with RBS. Clydesdale and Yorkshire Banking Group is considering a bid for Williams & Glyn branches, the FT said.
A spokesman at Santander UK said the bank had no comment. RBS was not immediately available for comment.
Santander made an offer for Williams & Glyn last month. RBS has sought to offload the small business lender, a key European Union condition of its taxpayer-funded rescue at the peak of the global financial crisis.
Santander walked away from a deal to buy Williams & Glyn fours years ago amid concerns about its technology platform, three sources with direct knowledge of the matter told Reuters earlier this year.
(Reporting by Abinaya Vijayaraghavan in Bengaluru; editing by Susan Thomas)