In a significant move marking the journey back to private ownership, the UK government has lowered its stake in NatWest Group to under 30% for the first time since the bank’s bailout in 2008, aiming for complete privatisation by early 2026.
The UK Government has significantly decreased its stake in NatWest Group to below 30%, marking a pivotal step in the bank’s return to private ownership since its nationalisation during the 2008 financial crisis. The Treasury now holds a 29.82% share, a substantial reduction from the initial 84% following the bank’s bailout. This transition signifies the first time the government’s ownership has dropped under 30%, positioning it below the threshold of a controlling shareholder and indicating a move towards full privatisation planned by early 2026.
NatWest, previously known as RBS Group, was thrust into government hands after facing near-collapse, necessitating a series of multibillion-pound bailouts. Throughout the years, the government has strategically sold off its shares in NatWest, with recent sell-offs and buybacks reducing its stake further.
The economic secretary to the Treasury, Bim Afolami, underscored the strides made towards completely privatizing NatWest, hinting at a potential retail offering of shares set to commence in the summer, depending on market conditions. NatWest has welcomed the government’s ongoing commitment to privatisation, aligning with the ambition for the bank’s and its shareholders’ best interests.
The Chancellor, Jeremy Hunt, reiterated the intent to fully privatise NatWest by 2026. The strategy includes extending share sales to retail investors after initially offering them to institutional investors. Despite some criticism regarding the political motivation and the expense of the share sale, the government remains focused on exploring various sale methods to ensure taxpayer value. The progression towards privatization continues under the leadership of Paul Thwaite, NatWest’s newly appointed permanent chief executive.
