NatWest, previously known as Royal Bank of Scotland, has made a substantial move by acquiring £1 billion worth of its shares from the UK Treasury, resulting in a decrease in the government's ownership stake to slightly above 11%. This action marks the second round of share repurchases in the year 2024, with 263 million shares being bought by NatWest at a price of 380.8p per share, as mentioned by CEO Paul Thwaite, who highlighted the significance of this step in the process towards complete privatization.
Following the financial crisis bailout in 2008, the government possessed as much as 84% of NatWest, but in the ensuing years, it has steadily lessened its control through selling shares to institutional investors and undertaking buybacks. In the year 2024, NatWest has already repurchased £2.2 billion in shares from the Treasury, causing a reduction of the government's ownership by more than two-thirds since December. Despite initial plans by the Labour government to conduct a public share sale of NatWest to diminish a part of the government's 20% stake, this proposal was cancelled in June due to apprehensions about potential costs to taxpayers amounting to £450 million. The earlier Conservative government had initially suggested a "Tell Sid"-style public offering.