NatWest has struck a deal to acquire most of the banking business of UK retailer Sainsbury’s, the companies said on Thursday, in a deal set to grow the British lender’s assets by £2.5 billion (€2.95 billion)

The first major transaction executed by chief executive Paul Thwaite since formally taking the role last year will also see its customer accounts rise by around one million, in line with the lender’s strategy to ramp up its retail banking business.

The deal is the latest banking business disposal by a major British retailer, after rival supermarket chain Tesco offloaded most of its banking activities to Barclays in a £600 million deal earlier this year.

“As well as a complementary customer base, the transaction is expected to add scale to our credit card and unsecured personal lending business within existing risk appetite,” Mr Thwaite said in a statement.

“NatWest Group has a strong track record of successful integration, and we are focused on ensuring a smooth transition for customers.”

The assets acquired include £1.4 billion in unsecured personal loans, £1.1 billion in credit card balances, along with around £2.6 billion of customer deposits.

The deal is expected to close on in March 2025 and NatWest will receive an agreed” 125 million consideration payment from Sainsbury’s at completion. – Reuters

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