(Reuters) – TPG dropped plans to bid for Royal Bank of Scotland’s (RBS.L) payment-processing business, two people familiar with the matter said, leaving rival buyout firms Advent International and Bain frontrunners to buy the unit.
The departure comes a week after RBS picked a trio of possible buyers for the WorldPay business and related operations, which are worth some 2.5 to 3 billion pounds ($3.9 to $4.6 billion). [ID:nN0896946]
RBS had encouraged TPG to team up with the other remaining suitor, Clayton, Dubilier & Rice. A third person familiar with the matter said the two private equity firms continued to talk but were unlikely to agree on staging a joint bid.
Given the size and complexity of the business, RBS had been keen to sell to a consortium. It was not immediately clear how seriously the bank would treat a sole bid from CD&R.
RBS and TPG declined to comment. Representatives for CD&R did not immediately return a request for comment.
By Tessa Walsh and Victoria Howley
(Additional reporting by Steve Slater and Quentin Webb)