The Victorian Supreme Court has approved NAB's plans to demerge its UK-based Clydesdale Bank.
National Australia Bank's demerger of its UK-based Clydesdale Bank has jumped its final hurdle, with approval by the Supreme Court of Victoria.
Monday's court approval follows overwhelming shareholder endorsement of the demerger last week.
NAB chief executive Andrew Thorburn said he was delighted the court had given the final approval for the demerger.
"The court's approval today is the final significant step in the separation of NAB and CYBG (Clydesdale Yorkshire Banking Group) into two independent corporate groups," Mr Thorburn said.
"The demerger allows each business to focus on improving performance in their home markets and on business priorities that will maximise value for their respective shareholders.
"Both companies can now look ahead to the future."
NAB will lodge the Victorian Supreme Court orders with the Australian Securities and Investments Commission (ASIC) on Tuesday, with the demerger to become effective on that date and to be implemented on Monday, February 8.
CYBG is expected to commence trading under the London Stock Exchanges (LSE) main market for listed securities on Tuesday on a conditional basis.
The outcome of the proposed initial public offering to institutional investors of CYBG, including pricing if the IPO, is expected to be announced on Tuesday.
NAB's price range for the float is STG1.75 to STG2.35 ($3.65 to $4.90) per share, with the demerger tipped to raise as much as $A1.08 billion for the bank.