The British government reduces its stake in NatWest below 20%, marking a milestone in its privatization.

The British government continues to divest its stake in NatWest, the former Royal Bank of Scotland, in a process that has brought its shareholding below 20%. This notable decrease represents a significant milestone in the bank's history, as the last time the British state had such a reduced stake in the entity was in 2008, when it became publicly owned. Specifically, the government now holds 19.97% of NatWest, compared to the previous 20.92%. This reduction below the 20% threshold implies that, according to UK legislation, the State is no longer considered a related party, leading to a decrease in administrative burdens and a reduction in public power to appoint executives. Since dropping from 30% in March, London has ceased to be a controlling shareholder in the bank. NatWest's CEO, Paul Thwaite, has emphasized that the main goal remains the bank's return to full private ownership, considering this measure to be the most beneficial for both the bank and shareholders in general. This strategy has been accelerated in recent months, coinciding with the change in government in the UK, shifting from conservative to Labour hands. The British government's stake in NatWest has been subject to careful planning, with the Tories aiming to reduce their presence in the bank, even considering a advertising campaign to encourage small savers to invest in the entity. However, the recent elections on July 4 have disrupted this initial plan. In this regard, Prime Minister Keir Starmer's strategy, now in charge at Downing Street, regarding the state's participation in NatWest, has not yet been fully outlined. However, his intention to continue reducing governmental influence in the bank in the near future has been hinted at. It is worth noting that the British government rescued the then Royal Bank of Scotland in 2008 with a significant sum of £45.5 billion (equivalent to €54.15 billion at that time) to initially acquire a 58% stake in the entity, a figure that later increased to 84.9%. As of today, NatWest's market capitalization is £26.9 billion (€32 billion), while the portion in public hands is valued at £5.37 billion (€6.39 billion). In summary, the reduction of the British government's stake in NatWest marks a significant step in the bank's transition to private ownership, reflecting the efforts of both authorities and the bank's management to achieve greater independence and efficiency in its financial management.