Business News: Election campaign threatens to disrupt multibillion NatWest retail offer

Plans for a summer share sale to the general public have been derailed by the unexpected announcement of a summer general election by Chancellor Rishi Sunak. The government had been preparing for a multibillion-pound mass market sale of its stake in NatWest Group, with a proposed retail offer of shares in the taxpayer-backed bank set to take place alongside an institutional placing of shares.

However, the timing of the general election has thrown a wrench into these plans, putting the NatWest retail offer “in the deep freeze,” according to sources. The Treasury had been working for months on the retail offering, which aimed to reduce the taxpayer’s stake in NatWest to as little as 10% after the combined sale.

The delay caused by the general election is expected to postpone the government’s full privatization of NatWest, which was rescued from collapse 16 years ago with £45.5bn of public money. Despite the turbulence surrounding the debanking row involving Nigel Farage, shares in NatWest have risen by more than 20% over the last year.

While a retail offer could still be revived after the general election, the government’s stake in NatWest has been steadily reduced over the years from almost 85%. NatWest, formerly known as the Royal Bank of Scotland Group, was saved from outright collapse by an emergency bailout that its then boss likened to “a drive-by shooting.”

The government’s plans for the NatWest share sale may have been scuppered for now, but the possibility of a revival after the election remains open.