The British government has cleared the way for a possible takeover of National Westminster Bank by deciding not to refer Bank of Scotland's hostile £22 billion sterling (€34.81 billion) bid to the Competition Commission. Mr Steven Byers, secretary of state for trade and industry, was "persuaded that the merger will not have an adverse effect on competition."

NatWest has already announced plans to sell off Ulster Bank, Gartmore, Greenwich Capital and NatWest Equity Partners.