Natwest Top Pick to get that

The British Natwest Juggernaut group has been pegged as the “most possible acquired” from the bank.

Natwest returned to the private ownership last month, ending the banking saga for almost two decades and preparing a lender for the agreement.

The bank has bought more than £ 5 billion shares from Treasury as part of the focused repurchase program in the last four years, which is now freeing the capital bundle for lenders.

“We think that this transaction makes the most reasonable for Natwest,” said RBC analyst Pablo de la Torre Cuevas and Benjamin Toms.

“Management has become the most open around the potential mergers and acquisitions.”

Analysts say sales transactions can reach £ 2.6 billion, which “does not require Natwest to increase capital”.

Cuevas and Toms said the takeover would help Natwest “participate in the British consolidation, while increasing its market share in a mortgage, where the bank is currently under body weight.”

The owner of the bank, Banco Sabadell, confirmed that they had received an expression of interest in the potential for the takeover of their British units on Monday.

Sabadell said “will assess the potential binding supply that he might receive”.

This was previously owned by the Lloyds Banking Group and was acquired by Sabadell in 2015 for £ 1.7 billion.

Lloyds can get out of walking for the takeover because of the “market share problem”.

Competition and Market Authority (CMA) assesses merger and acquisition offers to ensure they are not substantially reducing competition. Lloyds, as the largest retail bank in the UK, may face supervision that the takeover can make it too dominant.

But the analysts recorded the overthrow of the government of Marcus Bokkerink, a former Head of CMA, could “help facilitate the British agreement, which means that even Lloyds could kick the tires in TSB.”

Party buying Natwest

Analysts say Natwest can take the takeover through a reduction in £ 1.1 billion for repurchase and marginal hit to its cet1 ratio, which shows how good capitalization and more likely to withstand financial pressure.

Natwest ordered £ 1.8 billion in profit before tax for the first quarter of this year, exceeding £ 1.6 billion written by analysts.

The potential takeover will follow the offer of £ 11 billion by the group for the Santander UK retail arm earlier this year, according to a report from the Financial Times.

Talks between the two lenders are no longer active, but if the takeover runs, it will give birth to the biggest banking agreement since the financial crisis.

The bank started shopping for last year’s shopping after taking the majority of Sainsbury banking assets and bought a Metro Bank Metro Bank Metro Hypotek Portfolio.