NatWest Poised for Major £2.5bn Wealth Management Acquisition
NatWest Group is reportedly on the verge of finalising a monumental takeover of Evelyn Partners, with the deal valued at approximately £2.5 billion to £3 billion. This acquisition would represent the bank's most significant corporate move since its taxpayer-funded rescue during the 2008 financial crisis, signalling a bold strategic shift under current leadership.
Advanced Negotiations and Competitive Bidding
According to recent reports, NatWest has entered advanced discussions to purchase the wealth management firm from its private equity owners, Permira and Warburg Pincus. The bank has successfully outmanoeuvred rival bidder Barclays in recent days, with an announcement potentially expected as early as next week. Sources indicate that Barclays, once considered a strong contender, withdrew from the process after NatWest increased its offer during a competitive bidding round.
Royal Bank of Canada had also been linked to the acquisition process, though it remains unclear whether the institution submitted a final proposal for Evelyn Partners.
Strategic Rationale and Market Position
The potential acquisition aligns perfectly with NatWest's strategic objectives under Chief Executive Paul Thwaite, who has prioritised simplification and growth in higher-return sectors since assuming leadership in 2023. Wealth management and affluent banking have been identified as key areas for expansion, with this deal naturally complementing NatWest's existing Coutts private banking division.
Evelyn Partners, created in 2020 through the merger of Tilney and Smith & Williamson, oversees approximately £65 billion in client assets and provides comprehensive wealth management and financial planning services across the United Kingdom and Ireland. The firm's professional services arm was sold to Apax Partners last year, streamlining its focus on core wealth management activities.
Despite the substantial transaction value, the price remains relatively modest compared to NatWest's market capitalisation of nearly £52 billion. The bank's shares have performed strongly, rising close to 50 percent over the past twelve months, providing a solid foundation for strategic investments.
Industry Context and Advisory Support
This potential acquisition occurs against a backdrop of heightened deal activity within the UK wealth management sector. Financial institutions and asset managers are increasingly pursuing scale and long-term savings growth through strategic mergers and acquisitions. The sale process for Evelyn Partners is being managed by advisers at Evercore, reflecting the complexity and significance of the transaction.
Both NatWest and Barclays have declined to comment on the ongoing negotiations, maintaining discretion as discussions reach their final stages. The wealth management industry will be watching closely as this landmark deal could reshape competitive dynamics and influence future consolidation trends across the financial services landscape.
