Banco Santander has turned down a proposal from NatWest amounting to approximately £11bn for its UK retail operations, according to a report by the Financial Times.
The offer, advised by Morgan Stanley and UBS, is reportedly no longer under consideration, as individuals familiar with the situation claim Santander viewed the bid as undervaluing its business.
A Santander representative, has been quoted by Reuters, as saying: “The UK operations are not for sale and are a core part of Santander’s diversified business model which is proven to deliver attractive, sustainable returns over the long term.”
This stance follows previous interest shown by Barclays in acquiring Santander’s UK business, as reported by Reuters in January. Those discussions did not advance as Santander was reviewing its UK strategy.
NatWest has declined to comment on market speculation, according to a spokesperson contacted by the news agency. In the UK, Santander faces competition from financial institutions such as Lloyds Banking Group and Barclays.
The British market remains one of the 10 strategic regions for the Spanish bank, alongside Mexico, Brazil, and Spain.
In recent developments, Banco Santander has entered into an agreement with Erste Group to sell nearly 49% of Santander Polska’s share capital and 50% of the Polish asset management business it does not own for €7bn. The deal is subject to regulatory approvals and other conditions.
Post-transaction, Santander will hold approximately 13% of Santander Polska and intends to acquire full ownership of Santander Consumer Bank Polska by purchasing the remaining stake before completion.
Santander’s financial performance in the first quarter of 2025 reported an attributable profit of €3.4bn, marking a 19% rise compared to the previous year. This growth was supported by record net fee income and reduced costs.
The bank also expanded its customer base by nine million, increasing its total number of customers served to 175 million, while overall revenue rose 1% to €15.5bn.
