2 days ago
5
Legal & General (L&G) is plotting a swoop connected the workplace pensions supplier owned by NatWest Group, the FTSE-100 lender, arsenic its main enforcement seeks to turn its stock of the UK status market.
Sky News has learnt that L&G is among a fistful of suitors which person expressed an involvement successful acquiring Cushon from NatWest.
This weekend, City sources said determination was "significant" contention to bargain the concern and L&G was not definite to beryllium the eventual buyer.
If a woody with L&G does transpire, Cushon would augment a maestro spot concern which manages much than £36.5bn successful assets, making it the largest commercialized entity of its benignant successful the UK.
The L&G maestro spot portion serves 349 employers and 1.9 cardinal members.
Cushon manages assets worthy £3.7bn, according to the latest figures provided by NatWest, which bought a controlling involvement successful the concern for £144m 2 years ago.
The pensions concern serves astir 650,000 members crossed astir 21,000 employers.
NatWest owns an 85% involvement successful Cushon, with the remainder held by the subsidiary's management.
For NatWest, a merchantability would bespeak main Paul Thwaite's determination to refocus the slope - which shed the past vestiges of payer ownership earlier this twelvemonth - connected its halfway strategical priorities.
These see a bank-wide simplification programme and much progressive equilibrium expanse and hazard management.
Under Mr Thwaite, NatWest has considered a tiny fig of larger-scale acquisitions, including that of Santander UK.
That woody did not advancement due to the fact that of NatWest's determination to wage a terms that would beryllium deemed charismatic by its shareholders.
Cushon offers workplace pension products arsenic good arsenic a scope of workplace ISAs, including Junior ISAs, Lifetime ISAs and General Investment Accounts.
NatWest's acquisition of the concern was aimed astatine diversifying its non-interest income by offering Cushon's products to the bank's commercialized and concern banking customers.
For Antonio Simoes, the erstwhile HSBC and Santander enforcement who runs L&G, an acquisition of Cushon would bolster its offering successful an important strategical area.
The authorities announced large pensions reforms this twelvemonth aimed astatine driving greater standard and reducing unnecessary bureaucratic expenses, with a presumption to defined publication schemes managing astatine slightest £25 cardinal successful assets by 2030.
A NatWest Group spokesperson declined to remark connected the talks with L&G but had antecedently said successful narration to an auction of Cushon: "We bash not remark connected speculation.
"Our absorption remains connected delivering for our customers."
The identities of different bidders for Cushon were unclear connected Saturday.
L&G declined to comment.
English (US) ·