NatWest Group is reportedly in advanced talks to sell Cushon, the workplace pensions provider it acquired just two years ago. The move reflects the bank’s renewed focus on core priorities under chief executive Paul Thwaite, as the lender looks to streamline operations and strengthen its balance sheet.
A Deal Valued at £144 Million
In 2022, NatWest paid £144 million for an 85% controlling stake in Cushon, with the remaining shares retained by its management team. The acquisition was part of a wider strategy to diversify income streams by offering pensions and workplace investment products to commercial and business banking customers.
Cushon’s Market Reach
Cushon has established itself as a significant player in the workplace savings market, serving around 650,000 members through roughly 21,000 employers. The company provides a broad range of services, including workplace pensions, Junior ISAs, Lifetime ISAs, and General Investment Accounts. Its master trust platform currently manages close to £3 billion in assets, with pension-related income making up 97% of its £17.4 million revenues last year.
Rising Interest From Buyers
Sources suggest Cushon has attracted strong interest from several strategic investors within the pensions industry. This surge in interest comes as the UK government pushes for consolidation within the sector, with new reforms encouraging schemes to build greater scale and reduce administrative costs. By 2030, policymakers want defined contribution schemes to manage at least £25 billion in assets, a target that could drive further mergers and acquisitions in the industry.
Strategic Priorities Under New Leadership
For NatWest, a potential sale of Cushon would highlight Thwaite’s emphasis on simplifying the bank’s structure and managing risk more effectively. While the group has considered larger acquisitions such as Santander UK in the past, it has shown restraint, preferring deals that align with shareholder value rather than pursuing scale at any cost.
From Rescue to Privatization
The move also comes after NatWest’s full return to private ownership earlier this year, when the UK government sold its final stake in the bank. That holding stemmed from the £45.5 billion bailout of Royal Bank of Scotland, NatWest’s predecessor, during the 2008 financial crisis. The sale of Cushon could mark another milestone in the bank’s transition towards a leaner, more strategically focused organization.
When asked about the possible sale, a NatWest spokesperson declined to confirm the reports. “We do not comment on speculation. Our focus remains on delivering for our customers,” the spokesperson said.