LONDON — National Australia Bank Ltd has held talks with Spain's BBVA about creating a banking joint venture in the U.K., The Sunday Times said.

The two banks have discussed working together on a deal to buy the 300 branches being sold by Royal Bank Of Scotland Group PLC, with a view to buying more U.K. bank branches once they are put up for sale over the next few months, the newspaper said without citing sources.

The European commission ordered RBS to sell the branches after the bank accepted billions of pounds in state aid. Banco Santander SA is currently favorite to buy the branches.

Neither BBVA nor National Australia Bank were immediately for available for comment.

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