NatWest is preparing to divest pension provider Cushon just two years after its acquisition. The bank has enlisted advisers to facilitate the sale of the London-based fintech and is already in discussions with several potential buyers, according to a report by Sky News.
In 2023, NatWest acquired an 85% stake in Cushon for £144 million, with the remaining 15% held by the fintech’s management. Since then, Cushon has expanded to become a leading provider of workplace pensions, savings, and financial wellbeing services, catering to over 650,000 members across 21,000 employers.
At the time of the acquisition, then-CEO Alison Rose stated that the deal equipped the bank with tools to respond to customers’ evolving needs while delivering sustainable growth and returns. However, under the leadership of Rose’s successor, Paul Thwaite, NatWest has shifted its strategy, focusing on simplifying operations, driving disciplined growth, and pursuing large-scale acquisitions. This includes considering a bid for the UK operations of Santander.
The bank is also anticipating consolidation within the pensions sector, following government reforms aimed at increasing scale. A NatWest spokesperson commented: “We do not comment on speculation. Our focus remains on delivering for our customers.”
Dealmaking activity in the European banking sector is currently surging, with over 50 mergers and acquisitions recorded in the 12 months to 30 June 2025, according to data from law firm White & Case. The top 20 European banks have amassed a war chest of up to $600 billion in excess capital, driving the activity. Banks have offloaded more than 40 sizeable non-core subsidiaries during the year, contributing to the availability of high-quality acquisition targets.
White & Case partner Hyder Jumabhoy noted that consolidation fever has taken hold, with banks buoyed by their freedom from government ownership and healthy M&A resources. He added, “Finally, the flood gates of European bank public M&A are open, accompanied by a flurry of private M&A. The next twelve months will be anything but dull.”
