Latest news with #privatization
The Independent
a day ago
- Business
- The Independent
NatWest: Key dates in the bank's history from rescue to privatisation
NatWest has returned to private ownership after the Government sold its remaining shares in the bank. The banking group – which was previously called RBS – was rescued during the 2008 financial crisis with payments worth £45.5 billion, which led to it become part-owned by taxpayers. The Treasury has been rapidly selling down its shareholding over the past 18 months, whittling it down to zero and meaning the bank is once again in private hands. Here's a timeline with key dates from the bailout of NatWest through to its return to privatisation on Friday. 2000: RBS Group bought NatWest for £21 billion which, at the time, was the largest in British banking history. The combined group operated a number of separate banking brands, including the Royal Bank of Scotland, NatWest and Ulster Bank. 2007: RBS was part of a consortium that acquired the Dutch bank ABN AMRO. This decision, which propelled the group into investment banking and sapped its capital levels, proved to be destructive for RBS. The takeover was ultimately found to have taken place with 'inadequate due diligence' and was one of the key reasons why it was on the brink of collapse the following year. 2008: The Government makes a capital payment worth £20 billion to RBS. Then-prime minister Gordon Brown and chancellor Alistair Darling engineered the rescue after being warned the bank was facing imminent collapse and could run out of cash in a matter of hours. It was the fallout of the financial crash, combined with its structural weaknesses, which triggered a major bank run and pushed it to the brink of failure. Chief executive Fred Goodwin, who was in charge of the bank for nine years, stepped down the same month and was replaced by Stephen Hester. He had been nicknamed 'Fred the Shred' for his aggressive management style that oversaw thousands of job cuts at NatWest after it was taken over by the RBS at the turn of the century. He was later stripped of his knighthood. 2009: February: RBS unveiled its largest annual loss in the bank's history – an operating pre-tax loss of £40.7 billion. April: The Government's stake in NatWest increased to 70.3%. December: The Government injected another £25.5 billion into RBS, taking its shareholding to 84.4%, where it peaked. 2013: Ross McEwan stepped in as chief executive after a five-year tenure for Mr Hester. 2015: The first sale of Government-owned shares took place. 2018: RBS announced its first bottom-line profit in a decade, of £752 million. A second sale of shares of £2.5 billion took place. 2019: Dame Alison Rose took over as chief executive of the group – the first woman to lead a major UK high street bank. 2020: Under Dame Alison's leadership, RBS changed its name to NatWest Group, saying it was the right time to align the group name with the brand under which it does the majority of its business. NatWest represented about 80% of its customer base at the time. 2023: Dame Alison was forced to step down as the NatWest's chief executive in the wake of the debanking scandal, when she admitted being the source of an inaccurate story about politician Nigel Farage's finances in relation to his account with the group's subsidiary Coutts. She was replaced by Paul Thwaite, the bank's former chief executive of commercial and institutional business. 2024: March: The Government's stake in NatWest dropped below 30%, meaning it was no longer classed as being a controlling shareholder. July: The Treasury began accelerating the sale process and its shareholding dropped below 20%. December: The Treasury's shareholding fell below 10%. May: The Government sells its remaining shares in NatWest, returning it to private ownership for the first time since 2008. The Treasury confirmed that the sale came at a £10.5 billion loss to the UK taxpayer. But Chancellor Rachel Reeves said the bailout was 'the right decision then to secure the economy'.
Bloomberg
2 days ago
- Business
- Bloomberg
UK Fully Divests Its NatWest Stake, 17 Years After Bailout
NatWest Group Plc returned to full private ownership on Friday, nearly seventeen years after the UK government was forced to rescue the lender in the depths of the financial crisis. The government once owned as much as 84.4% of NatWest but has been rapidly selling down its holding in recent months as shares in the lender rallied along with those of other UK banks.
The Guardian
2 days ago
- Business
- The Guardian
Sir Bob Reid obituary
In the spring of 1990, the chief executive's office at British Rail received an urgent telephone call from the area manager at Newcastle upon Tyne saying there was a one-armed Scotsman wandering around the main signal box claiming to be BR's new chairman and wanting to know how everything worked. Was it all right to tell him? The man was Bob Reid, who had recently moved from Shell, where he was the UK chairman, and was now on the brink of a difficult five-year stint at BR that would end in a privatisation about which he had serious misgivings. His foray into the signal box, matched by an excursion into the drivers' restroom at Waterloo, was typical of the man. Determined, impulsive and impatient to get things moving, he had a liking for human contact and an easy manner, regardless of rank. The offer to take over BR had come in 1990. Reid, who has died aged 91, was not the first choice; rumour had it that 20 people had already turned it down. But he saw it as an opportunity to apply his skills to an inward-looking public sector organisation that had long been a concern to government and which faced major challenges with the forthcoming Channel tunnel rail link. Reid could not wait to get started, but he dismayed some of his new colleagues with a bullish joke that he was used to much bigger projects than those he faced at BR. When he took over, the railways were improving, although the level of government subsidy remained controversial. Under his predecessor, a veteran railwayman confusingly also called Sir Robert Reid, steady improvements had been made, helped by a benign economic environment. The business had been reorganised into sectors, which proved a success, but the recession of the early 1990s now hit railway finances and Bob Reid failed to get government backing for BR's proposed investments. He left the running of the railway largely to his chief executive, John Welsby, and concentrated on projects such as the Channel tunnel, which the government had made a priority. BR favoured a route through south London that provided alternative options and would be linked to expensive new facilities. But the government, with Michael Heseltine promoting the regeneration of the Docklands area, opted for an east London route. Reid took the rebuff badly and some felt he might resign, but he remarked in an outburst that he immediately regretted: 'When you are in the middle of a pantomime, you want to stay with it.' When BR famously blamed 'leaves on the line' and 'the wrong kind of snow' for various delays, and when he failed to get his investment plans through, his lack of success began to invite questions about his competence in dealing with government. It was not helped when the transport minister, Malcolm Rifkind, described him as being 'on a learning curve'. Within the railways, Reid's lack of appetite for detailed knowledge grated, and managers were reluctant to discuss problems for fear of receiving a diktat. But they respected his strong emphasis on safety, including his insistence that track maintenance supervisors must brief their gangs on safety every morning. Reid's difficulties multiplied when John Major's new government decided to privatise the railways. That scenario had not been part of Reid's original brief, and he was publicly critical of the detail. He forecast accurately that the complex division of the system would multiply bureaucracy, that profits would not be sufficiently reinvested, and that safety could be compromised. Some in BR hoped he would challenge the plan by resigning. But he argued that 'managing large undertakings through the medium of government is a recipe for all sorts of problems. Even though I would have done it differently, getting BR into the private sector is the main thing.' By 1995, at the end of his term, Reid could point to better financial performance (with expectations of a £400m-a-year profit for BR), an improvement in industrial relations that had seen just two days lost to strikes over his whole period in office, and improved productivity. But he had lost the strategic battles. The son of Elizabeth (nee Paul), and William Reid, he was born in Cupar, Fife, where his life was transformed by a terrible accident when he was nine. Working in his father's butcher's shop one evening, he attempted to unstick a mincing machine and lost his right hand. He described the incident as 'catastrophic' but insisted it only sharpened his desire to be part of the action. He learned to write with his left hand within a fortnight and became a formidable golfer with a handicap of four. 'Making things happen is a state of mind,' he would say later. 'The joy of leadership lies as much in overcoming setbacks as enjoying the rewards of success.' Reid demonstrated his leadership during a career with Shell that he started in 1956 as a management trainee after studying politics, economics and history at St Andrews. He represented the university at golf and met his future wife, Joan Oram, there – they married in 1958. He also forged significant friendships with two aspiring politicians, Bob Horton, later chairman of BP and National Rail, and John MacGregor, who was appointed transport secretary while Reid was running BR. His Shell career, largely focused on the 'downstream' processing and marketing of oil, took him to Malaysia, Nigeria, Kenya and then back to Nigeria as managing director from 1970-74, before a similar job in Thailand and a posting in Australia as director of downstream oil. In 1983 he was brought back to London as coordinator for supply and marketing, becoming chairman and chief executive of Shell UK in 1985. Reid, nicknamed 'the one-armed bandit', was admired for his energy and enthusiasm but never reached the committee of managing directors, as board level was known at Shell. His skills in dealing with people were deployed in what was largely a representational role, although it included responsibility for UK refining and the important North Sea operations. His experience of determinedly camping in the outer offices of Nigerian ministers when they refused to see him was judged to have helped him with the UK government. Reid's five years as chairman reinforced his reputation for energy, unstuffiness and charisma. He crusaded for proper management training (in the absence then of business schools), establishing the Foundation for Management Education and chairing the British Institute of Management (1988-90). With his sympathy for the arts (particularly music and opera) and a keen eye for public relations, he took Shell's sponsorship in a new direction with backing for Bafta. At a time when Shell's continuing activity in South Africa was under attack, Reid argued that the company could be part of change, and provided liberally managed employment that helped it to be seen in a different light. He was knighted in 1990. On leaving BR he became chairman of the retail giant Sears Holdings, and later deputy governor of the Bank of Scotland. He was the first chancellor of Robert Gordon University in Aberdeen. Other chairmanships included London Electricity, Avis Europe and the International Petroleum Exchange. Joan died in 2017. Reid is survived by their sons, Douglas, Patrick and Michael. Robert Paul Reid, business executive, born 1 May 1934; died 28 May 2025
Argaam
3 days ago
- Business
- Argaam
Saudi Arabia seeks to privatize stadiums: Official
Basim Ibrahim, Sport Sector Investment Development Director, the Ministry of Investment, said there are distinctive investment opportunities managed by the Ministry of Sports in the Kingdom. This includes offering sports stadiums to the private sector for management and commercial operation. Thus, the stadiums would turn entirely into a commercial project, not only intended for hosting sports matches. In an interview with Asharq, Ibrahim confirmed that the Ministries of Sports and Investment are working on privatizing sports clubs. He added that eight clubs were already privatized in the first phase, and 14 others will be offered for privatization in the second phase. The remaining clubs will also be privatized in other phases. There is still a focus on specialized sectors in the investment field, including sports medicine, sports manufacturing, and sports technology, Ibrahim said. He added that investors are being assured that this is the ideal time to enter the Saudi market and seize other opportunities such as attracting sports academies, gyms, and sports tourism.
Zawya
3 days ago
- Business
- Zawya
Mubadala, TAQA complete transaction for purchase of power plant in Uzbekistan
ABU DHABI - Mubadala, the Abu Dhabi sovereign investor, and Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utilities in Europe, the Middle East and Africa, have completed the acquisition of a gas-fired power generation plant at the Talimarjan Power Complex in Uzbekistan. Mubadala and TAQA each hold a 40 percent stake in the 875 MW TPP1 combined-cycle gas-fired plant through a newly established project company, Talimarjan Power Plant 1 LLC. Both TAQA and Mubadala also hold a 40% stake in the Talimarjan Operations & Maintenance LLC (O&M), which was established to operate the plant. Uzbekistan's JSC 'Talimarjan Issiqlik Elektr Stansiyasi' (TIES) holds the remaining 20 percent stakes in both the project company and the O&M entity. This transaction supports investments into the privatisation of Uzbekistan's power sector. It follows a strategic partnership between the Governments of Uzbekistan and the United Arab Emirates whereby Mubadala and TAQA will bring their global power sector expertise to the local power market in Uzbekistan. The 875 MW TPP1 plant has a Power Purchase Agreement (PPA) with JSC 'Uzenergosotish' (UES) (successor power purchaser to JSC 'National Electric Grid of Uzbekistan') for 25 years and plays a critical part in meeting demand for electricity in Uzbekistan as the country continues to experience rapid population and economic growth. Hammad Rahman, Head of Asia Pacific Infrastructure at Mubadala, said, 'Mubadala is committed to supporting countries across the world to meet their energy needs while reducing carbon emissions. Efficient natural gas-fired powered plants such as TPP1 will play an important part in enabling the transition to cleaner sources of energy. Uzbekistan is recording a significant growth in demand for power, and Mubadala looks forward to working with TAQA and our local partner TIES to ensure communities and businesses across the country have access to reliable, affordable and secure power supply that supports progress and socioeconomic development.' Frank Possmeier, Chief Investment Officer, Generation at TAQA, said, 'TAQA is pleased to collaborate with Mubadala and TIES in acquiring this vital asset that plays a crucial role in Uzbekistan's journey towards a privatised energy sector. As a low carbon power and water champion, TAQA will leverage its extensive experience and expertise to help Uzbekistan meet its growing energy needs while continuing to invest in this critical sector. Our stake in TPP1 demonstrates progress in delivering on our 2030 targets which aim to grow our power generation capacity to 150 GW and strengthens our operation and maintenance capabilities which is also a pivotal element of our strategy. We are committed to enhancing efficiency and ensuring TPP1 runs as a world-class power plant as part of our expanding portfolio as we continue to provide power to the communities we serve.' The acquisition of the TPP1 project brings direct foreign investment into Uzbekistan's thriving energy sector and will also support local development of social infrastructure and knowledge sharing initiatives aimed at capacity building and sustainable community development. TAQA's Generation business is targeting 150 GW of gross power generation by 2030, with around 100 GW of that capacity coming from renewable power sources through its leading stake in Masdar's renewable energy operations.
