NatWest in discussions to offload pension provider Cushon
In the dynamic world of European banking, the next twelve months are expected to be anything but dull. This is particularly true for Natwest Group, as the bank considers a significant move in the form of a potential sale of Cushon, a major workplace pensions, savings, and financial wellbeing provider.
The acquisition of Cushon by Natwest in 2023 was a strategic move aimed at expanding the bank's digital retirement savings offerings. Then-CEO Alison Rose stated that the acquisition meant Natwest was equipping itself with tools to develop a proposition responding to customers' changing needs.
Cushon has grown significantly since its acquisition, serving over 650,000 members across 21,000 employers. However, under Natwest's current strategy, spearheaded by the bank's new CEO, Paul Thwaite, the focus has shifted towards large-scale acquisitions and simplifying operations.
This potential sale comes at a time when the European banking sector is experiencing a wave of consolidation. More than 50 M&A deals have occurred in the sector in the 12 months to 30 June 2025, a trend that White & Case partner Hyder Jumabhoy refers to as a "consolidation fever" sweeping through the market.
The floodgates of European bank public M&A have opened, accompanied by a flurry of private M&A. The top 20 European banks have built up a war chest of up to $600bn in excess capital, providing them with the financial muscle to make such moves.
The government's reforms in the pensions sector have also driven the anticipated consolidation in the pensions sector. Banks have offloaded more than 40 sizeable non-core subsidiaries over the course of the year, suggesting a restructuring of the industry.
Natwest is not the only bank considering consolidation. The bank is anticipating consolidation in the pensions sector following the government's reforms. In fact, Natwest is currently in talks with potential suitors for the sale of Cushon.
The sale of Cushon by Natwest is two years after its initial acquisition for £144, highlighting the rapid pace of change in the banking sector. Banks are buoyed by their freedom from government ownership and healthy M&A war chests, making this period of consolidation a significant one.
As the European banking sector navigates this period of consolidation, one thing is clear: the industry is evolving, and banks are adapting to meet the changing needs of their customers.
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