LONDON Spain's BBVA (BBVA.MC) has been in talks in recent weeks to possibly buy the Yorkshire and Clydesdale banks in Britain from owner National Australia Bank (NAB) (NAB.AX), the Sunday Times said.
The potential sale, which could value the British business at 2 billion pounds ($2.9 billion), comes after NAB pulled out of the auction to buy 318 Royal Bank of Scotland (RBS.L) branches on Friday.
The Times said NAB was expected to put the banks up for sale in the next several weeks.
NAB is expected to quit the British market altogether now, with a sale preferred over a listing of its UK business.
Both NAB and BBVA declined to comment.
($1=.6831 Pound) (Reporting by Lorraine Turner; editing by Karen Foster)