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Major bank rejects NatWest takeover offer weeks after SCRAPPING car loans arm despite bosses saying it’s not for sale
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A MAJOR bank reportedly rejected a takeover bid from NatWest despite bosses saying it wasn't for sale.
Santander turned down a bid worth around £11billion for its UK retail banking arm as it was deemed too low earlier this year.
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The approach by NatWest, which was being advised by investment banks Morgan Stanley and UBS, is no longer being considered, .
It comes weeks after Santander said it would scrap the car loans arm from its core UK operation following a major car mis-selling scandal.
Since NatWest's approach, Santander has raised €7billion from the sale of a large stake in its Polish retail banking arm.
The Spanish-headquartered bank said it would use some of the cash from the sale to invest in other regions as it focuses its attentions away from Europe and to the Americas.
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It has launched an aggressive expansion of its corporate and investment bank in the US, led by its chief executive Ana Botín.
Meanwhile, the bank has announced more than 2,000 job cuts in the UK since last October and confirmed plans to shut 95 bank branches.
The rejected offer comes after Santander was reported to be looking at ditching its car finance arm from its core UK operation.
The bank has already set aside £295million to compensate any customers who were mis-sold finance agreements when buying cars.
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Ms Botín stated in February that the bank was not up for sale but city analysts suggested shedding its car finance division could make Santander more appealing to potential buyers.
Benjamin Toms, of RBC Capital Markets, told The Telegraph: "Shifting of the consumer finance business out of the UK subsidiary could be an important step in this sale process.
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"Given the ongoing litigation in the motor finance space, removing this product from the equation, will likely help with the marketability of the Santander UK asset."
A Santander spokesperson said: “As we have said, the UK is not for sale and is a core part of Santander’s diversified business model which is proven to deliver attractive, sustainable returns over the long term."
A spokesperson for NatWest said: "We don’t comment on speculation."
Santander axing bank feature
Santander is today scrapping its text alerts service allowing users to get notified when certain things happen to their accounts.
Previously, you could set up free text and email alerts for various updates, like your weekly balance or large withdrawals.
However, from today, customers who have set up these alerts will no longer receive them.
Santander said it was making the change so customers can "get a more detailed view" of their account activity on online or mobile banking.
However, consumer rights expert Martyn James said the move could "only be a bad thing for consumers".
He said: "With the closure of the bank networks, it's more important than ever that banks and financial institutions make sure we know about the important things that affect our money.
"Text alerts are vital as people actually read them and act on them. We forget about checking our online accounts - or go in to denial about them - and most people don't read their app messages."
If you relied on the alerts, you’ll now need to check your Santander account manually, either via the app, online, or by calling customer services.
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For those who are not a fan of app banking, you might want to consider switching banks altogether.
Many still offer free text alerts and some are even offering cash incentives to switch.
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up - there's a full list on CASS' website.
Under the switching service, swapping banks should take seven working days.
You don't have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Facebook group to share your tips and stories
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