NatWest, the British state-backed bank, has agreed to buy 1.3 billion pounds ($1.6 billion) worth of its shares back from the government. This deal will reduce the government’s stake in the former Royal Bank of Scotland to 38.69%. The lender returned to majority private ownership in March 2022 after a similar block sale.
The government has a target of fully returning NatWest to private ownership by 2026. This is the sixth block sale of NatWest stock to date and reduces government ownership below 40%.
“Today’s sale is another major milestone in returning NatWest to full private ownership as promised,” said Andrew Griffith, economic secretary to the Treasury. NatWest CEO Alison Rose added that the transaction “demonstrates positive progress on the bank’s strategic priorities and the path to privatisation”.
Britain owned 84% of NatWest at the peak of its ownership after it bailed out the bank in 2008. The sale announced on Monday is a step closer to the bank’s full privatisation.