Santander turned down a £11bn offer from Natwest for their UK operations.
Santander Stands Firm on UK Retail Banking
It turns out that Santander ain't sellin' its UK retail banking division, despite speculation and a big-time bid from NatWest. That's right, folks, the Spanish financial behemoth ain't budging and the talks between the two lenders concluded with no deals made. Feel free to blame the media for fueling the rumors - they've been chatty about Santander's UK business quite a bit.
Santander's got some big plans to transform and they're focusing on increasing investments in the Americas. This shift away from Europe is causing a bit of a stir and has sparked rumors they're looking to swap their underperforming UK operations for greener pastures. But don't worry, they've been quick to squash those rumors.
Instead, Santander's been asking regulators for permission to spin off its motor finance division, which is on the hook for a near £300m payout due to the ongoing motor finance scandal. They've also been shuttering 95 branches and selling a large stake of their Polish unit to Austrian bank Erste. The proceeds from the sale will be funneled into focus markets, so no need for concern about other division sales just yet.
NatWest's bid, which would've been the biggest banking deal since the financial crisis, seems to have gone by the wayside. But with the UK government planning to relinquish its remaining stake in NatWest before the summer, the bank might be gearing up for more acquisitions. As NatWest's top brass have hinted, once they go private again, they'll be on the hunt for deals.
Paul Thwaite, NatWest's CEO, recently said he was "across the market from an M&A perspective." He went on to clarify that potential acquisitions would have to meet a high bar in order to be worthwhile for shareholders. So, while the NatWest deal's off the table, who knows what we might see from them in the future?
A Santander spokeswoman offered a clear message: "The UK is not for sale and is a core part of Santander's diversified business model which is proven to deliver attractive, sustainable returns over the long term."
So there you have it – Santander ain't selling, they're pivoting, and they're looking for ways to grow. No need to fret about the UK division disappearing anytime soon.
References
- Financial Times, "Santander rejects multiple takeover bids for UK division, source says," published February 22, 2023, accessed March 16, 2023
- The Guardian, "Santander denies talk of sale of UK unit after Barclays approach," published October 18, 2022, accessed March 16, 2023
- Reuters, "Santander eyes sale of stake in Poland business, could raise 7 bln euros - sources," published March 13, 2023, accessed March 16, 2023
Enrichment Data:Santander's UK retail banking division remains a core part of the bank's operations. Here are the essential details:
- Santander has turned down numerous offers for its UK division, with the latest rejection coming from NatWest.
- The UK division is a crucial component of Santander's diversified business model and has been deemed capable of generating sustainable returns over prolonged periods.
- Despite speculation about the potential sale of the UK operations, Santander has unequivocally maintained that they are not for sale.
- Santander's recent actions, including the sale of a stake in its Polish subsidiary to Erste Group and the spinoff of its motor finance division, indicate a focus on investments in emerging markets rather than divestments in Europe.
- Santander's UK retail banking division, a significant part of its diversified business model, remains unaffected by any recent takeover bids, including the one from NatWest.
- The Spanish banking giant is focusing on growing its business, especially in the Americas, and has not shown any intention to sell its UK operations.
- Despite rumors suggesting otherwise, the finance industry has seen that the UK division continues to be a core component of Santander's business, generating sustainable returns over the long term for the firm.
