NatWest has purchased £1 billion in shares from the Treasury as part of its journey toward full privatisation.
- This transaction marks NatWest’s second buyback in 2024, acquiring 263 million shares at 380.8 pence each.
- The UK government’s ownership in NatWest, previously at 84% post-2008 bailout, now stands at 11%.
- Plans for a public share sale were cancelled in June due to taxpayer cost concerns.
- The ongoing reduction of government stake aligns with long-term privatisation objectives since the financial crisis.
NatWest has taken a significant step towards its objective of full privatisation by purchasing £1 billion worth of shares from the UK Treasury. This move reduces the government’s ownership in the bank to just 11%, a notable decrease from the 84% stake held after the 2008 financial crisis bailout.
In this recent transaction, NatWest acquired 263 million shares, each priced at 380.8 pence. This buyback is the second occurrence in 2024, reflecting a robust strategy to limit governmental control. Paul Thwaite, CEO, commented on this purchase as an ‘important milestone on the path to full privatisation’.
Since the beginning of 2024, NatWest has reclaimed £2.2 billion of its shares from the Treasury. This activity aligns with a series of buybacks and institutional investor sales that have drastically lowered the government’s holding since December of last year. The strategy indicates NatWest’s commitment to returning to a privately-owned entity.
Plans for a public sale of NatWest shares were abandoned by the Labour government in June. Originally proposed by their Conservative predecessors, the public offering was expected to reduce the government’s 20% stake further. However, it was cancelled due to fears it might lead to a £450 million loss for taxpayers.
The share buyback continues a long-standing trend towards privatisation. The UK government’s decision to gradually sell off its stake has been a key objective since the taxpayer-funded bailout over a decade ago. With each transaction, NatWest edges closer to full independence from government oversight.
NatWest’s strategic buyback represents a crucial move in its ongoing journey towards full privatisation, reducing governmental influence to 11%.
