Santander's Strategic Decision

In a move that has caught the attention of the financial world, Santander has turned down a substantial acquisition offer from NatWest. The bid, valued at approximately £11 billion, was deemed insufficient for the Spanish banking giant's UK retail banking operations.

The Implications of the Offer

This proposed deal, which would have marked the largest banking transaction in the UK since the financial crisis, comes at a time when NatWest is gearing up for significant expansion within the domestic market. This expansion is further fueled by the UK government's plans to sell its remaining £46 billion bailout investment in the bank.

Behind the Scenes

Sources close to the negotiations revealed that NatWest's bid was in the range of "more than £10 billion, but less than £12 billion" for Santander UK. With Santander's British division reporting total equity of £10.4 billion at the end of 2022, the offer's valuation was closely aligned with the operation's market worth, highlighting the strategic importance of this division.