UK Government Reduces Stake in NatWest, No Longer Controlling Shareholder

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The British government has announced a significant milestone in its ownership of NatWest, formerly known as the Royal Bank of Scotland, revealing that it has decreased its stake in the bank to below 30%. This development marks a departure from the government’s role as the controlling shareholder, a position it assumed during the global financial crisis when it bailed out the bank.

Economic Secretary Bim Afolami hailed the achievement as a demonstration of substantial progress in returning NatWest to private ownership. The government’s stake fell below the 30% threshold through the sale of additional shares to institutional investors under its trading plan. At its peak, the government held an 84% ownership stake in the bank.

Efforts to expedite NatWest’s return to private hands by 2026 have prompted the government to explore options for further divestment, including a potential sale of shares to the public as early as June. With its stake now below 30%, the government no longer meets the criteria for a controlling shareholder under UK listing rules, thereby easing certain restrictions on board appointments.

A spokesperson for NatWest expressed satisfaction with the government’s recent actions aimed at facilitating the bank’s transition to private ownership. In a bid to accelerate the privatization process, NatWest has sought shareholder approval to increase its stock buyback program from 5% to 15%, signaling its commitment to advancing the agenda of privatization.