Finance
NatWest remains on acquisition trail, CEO says, after 2024 deal flurry
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LONDON (Reuters) – NatWest Group will explore “strategically congruent” and “financially compelling” M&A opportunities after a flurry of
LONDON (Reuters) – NatWest Group will explore “strategically congruent” and “financially compelling” M&A opportunities after a flurry of investments this year, its CEO said, as the state-backed lender looks forward to becoming fully privatised as early as the first half of 2025.
Speaking at the FT Global Banking Summit on Tuesday, Paul Thwaite said he had “lots of potential uses” for the bank’s excess capital but would be thoughtful about its deployment, whether supporting growth in existing businesses or pursuing additional “inorganic tuck-ins”, like the deal struck to buy the banking business of retailer Sainsbury’s in June.
Although describing the bank as “on the front foot” when it comes to acquisitions, investors should not expect any changes in NatWest’s international perimeter, Thwaite said.
(Reporting By Sinead Cruise, editing by Lawrence White)
M&A stands for mergers and acquisitions, which refers to the process of consolidating companies or assets. It involves the purchase of one company by another or the merging of two companies into a single entity.
Excess capital refers to the funds that a company has available beyond what is necessary for its operations. This capital can be used for investments, acquisitions, or other growth opportunities.
Inorganic growth strategies involve expanding a company's operations through mergers, acquisitions, or partnerships rather than through internal development. This approach can quickly increase market share and capabilities.
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