Santander Bank continues to invest in the UK
Aiming to increase its presence in the UK, the Spanish bank tries to buy a brand of Royal Bank of Scotland (RBS)
Despite the news in Spain on Brexit, Santander Bank has submitted a binding purchase offer to Williams & Glyn, a brand of Royal Bank of Scotland (RBS). This move by the Spanish entity goes in the direction reflected in its business strategy aimed at increasing its market share in the UK.
Brexit and its consequences have not affected Santander Bank`s strategy: with this offer it brings to an end a preparation process that started seven years ago.
In 2009 the Royal Bank of Scotland (RBS) was rescued with public help by the British government after an agreement between the Treasury and the European Commission. London injected 25.000 billion pounds (28.223 million euros) of capital in the bank to avoid bankruptcy and the Executive now controls 84.4% of the Scottish bank. This has been the largest rescue operation made to a British public bank by the government so far.
But there was one condition. RBS was forced to get rid of much of its business lines and subsidiaries, including the firm Williams & Glyn, specialized in financial services. Since then RBS has tried to sell this company, in a process that has been delayed by its special complexity, as alleged by the Scottish entity.
There are 6,000 employees working at the Royal Bank of Scotland In this operation which will affect around 300 branches of the firm.
Different financial sector experts consider that selling the brand of RBS Williams & Glyn, represents an essential step for the Scottish bank to undertake the path of economic recovery and thanks to which the British government will, in turn, be releasing its participation in the bank.
Finally, this bid could mean an attempt by the Santander Bank to offset the lowering of its business in Spain by increasing its market share in the UK.
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Del Canto Chambers’ Editorial Board