NatWest
NatWest ((formerly the National Westminster Bank) is a commercial bank in the United Kingdom, part of the Royal Bank of Scotland Group. It was established in 1968 from the merger of National Provincial Bank and Westminster Bank. NatWest is considered one of the Big 4 banks in the UK, and has a large branch network across England and Wales.
History
NatWest can trace its routes back to 1650 with the founding of Smiths of Nottingham. The National Westminster Bank was not formed until 1968 upon the merger of National Provinical Bank and Westminster Bank. Following the merger, the bank's famous three chevron logo was launched.
The National Westminster Bank became one of the Big 4 UK Banks, with a large branch network of 3,600 branches. It also owned the Coutts & Co private bank, as well as Ulster Bank in Northern Ireland.
Expansion
In the 1980s, the bank decided to expand away from its traditional retail banking in the UK. Its merchant bank operation, Country Bank went on an acquisition spree, acquiring various stockbroking and jobbing firms to create NatWest Investment Bank. The bank also expanded internationally, forming NatWest Bancorp in the United States, and opening branches in Europe and the Far East.
The bank also built the NatWest Tower, built in the shape of the NatWest logo.
Problems
The bank's expansion strategy hit trouble in the late 1980s, with the stock market crahs of 1987 and involvement in the collapse of Blue Arrow financial scandal. Later the bank would exit from the investment banking business, and sell of its overseas subsidiaries to concentrate on its UK business under a new name, NatWest.
Problems also hit the bank's London office. In 1993, the NatWest tower was devastated by a Provisional IRA bomb, and the bank vacated the building, later selling it in 1998.
Takeover
In 1999, NatWest announced it was to merge with Legal & General in a multi billion pound deal, the first between a bank and an insurance company in UK corporate history. The move received a poor reception in the London financial markets, and NatWest's share price fell substantially.
In response, the Bank of Scotland began a hostile takeover bid for the bank, an audacious move for the smaller Scottish bank. The Bank of Scotland's aim was to break up the NatWest Group and dispose of non-retail assets. NatWest was forced to cancel its Legal and General merger, but refused to agree any takeover with a rival bank. The Royal Bank of Scotland tabled another hostile bid, and trumped the Bank of Scotland's bid.
The takeover of NatWest made the Royal Bank of Scotland, the second largest bank in terms of stock market value in both the UK and Europe.