- The offer did not progress beyond initial discussions, and the bid is no longer under consideration.
- Santander reportedly viewed NatWest’s valuation of its UK business as too low, prompting the rejection.
The race for consolidation in European banking found an early roadblock this year when Banco Santander rejected a multibillion-pound offer from NatWest Group for its British retail unit, the Financial Times reported.
While the bid, reportedly estimated between £10 billion and £12 billion, never moved past initial talks, the move highlighted both the momentum behind domestic mergers and acquisitions and Santander’s firm grip on its UK presence.
According to sources cited by the Financial Times, NatWest approached Santander earlier this year with a proposal to buy its UK retail bank. But the Spanish group considered the valuation too low and declined to proceed. The bid is no longer active. Despite the rejection of the deal, Santander remains adamant about keeping its British business.
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Mergers And Acquisitions In The UK
NatWest’s move, while unsuccessful, comes at a time when UK lenders appear increasingly open to mergers and acquisitions. The government is close to fully exiting its stake in NatWest, which has added fuel to speculation about the bank’s domestic ambitions.
Meanwhile, Barclays and Nationwide have already made moves to expand by acquiring smaller rivals. In one of the continent’s largest recent banking deals, Austria’s Erste Group agreed last week to acquire most of Santander’s Polish operations in a transaction worth €7 billion ($7.9 billion).
Since taking the reins in 2014, Executive Chair Ana Botín has steered Santander through significant structural changes. While the bank maintains a stronghold in core European markets, it’s shifting resources increasingly toward the Americas.
Santander has expanded its investment banking footprint in the U.S. and streamlined operations across parts of Europe. With the UK unit delivering stable returns, Santander appears unwilling to part with a business it sees as central to its long-term plans.