LONDON (AP) — Royal Bank of Scotland said Friday that Spanish bank Santander has backed out of its deal to buy 316 of RBS branches in the U.K., leaving the bailed-out bank looking for a new buyer.

RBS, which is 82 percent owned by British taxpayers, was required by the European Commission in 2009 to sell the branches as a condition for receiving state aid. In August 2010, Santander agreed to buy the 316 RBS branches in England and Wales, along with the NatWest branch business in Scotland, but the deal was delayed several times.