Santander, the Spanish banking giant, has made a surprise move to explore the sale of its UK-based business, Nu Bank, to National Westminster Bank (NatWest). The potential deal is part of Santander’s ongoing efforts to restructure and focus on its core operations in Spain and Latin America.
According to sources close to the matter, Santander has initiated talks with NatWest, one of the UK’s largest banks, to discuss the possible sale of Nu Bank, which has a significant presence in the UK and around 1.7 million customers. While the deal is still in its early stages, industry experts believe it could be valued at around £1.5 billion, pending due diligence and negotiations.
The potential sale of Nu Bank is seen as a strategic move by Santander to divest non-core assets and redirect its focus on its most profitable and high-growth markets. Santander has a significant presence in Spain and Latin America, where it has been expanding its operations and investing in digital banking initiatives.
NatWest, on the other hand, is looking to expand its presence in the UK’s retail banking market and increase its market share. The acquisition of Nu Bank would give NatWest access to a significant customer base, as well as a range of existing distribution channels and a strong brand presence.
The sale of Nu Bank would mark the latest departure from Santander’s international expansion strategy, which began more than a decade ago. In 2012, Santander acquired a controlling stake in Royal Bank of Scotland, another major UK bank, for £1.3 billion. However, the deal ultimately proved unsuccessful, and Santander has since written down the value of its RBS holding.
Industry experts believe that the sale of Nu Bank could be a positive development for both parties involved. NatWest would gain a strong foothold in the UK market, while Santander would be able to focus on its core businesses and reduce its exposure to the highly competitive UK retail banking market.
“Rhonda Beaumont, Head of Retail and Private Banking at National Westminster Bank, said: “We are always on the lookout for opportunities to grow our business and enhance our offerings. The acquisition of Nu Bank would be a great step in achieving that, and we are excited about the potential benefits it could bring to our customers and our business.”
Maria Hernández, CEO of Santander’s UK division, said: “At Santander, we are committed to creating value for our shareholders and focusing on our core markets. The sale of Nu Bank would be a strategic step in achieving this goal and would allow us to concentrate on our high-growth markets in Spain and Latin America.”
In the coming weeks, the two banks are expected to engage in due diligence and negotiations to confirm the terms of the deal. If successful, the acquisition would be subject to regulatory approval and the necessary corporate approvals.
The potential sale of Nu Bank to NatWest could have significant implications for the UK banking landscape, marking the beginning of a new era of consolidation and opportunities for growth. As the banking industry continues to evolve and adapt to changing market conditions, it is clear that the stakes are higher than ever.
