NatWest dips after $3.7 billion deal to acquire Evelyn Partners agreed
NatWest Shares fell nearly 5% in early market action on Monday after the company announced a £2.7 billion ($3.7 billion) deal to buy Evelyn Partners, one of Britain’s largest asset managers.
The deal will double NatWest’s total assets under management from £59 billion to £127 billion, the British bank said in a press release on Monday.
NatWest plans to increase its asset management services as it could help fee-based businesses counter the decline in interest income from falling central bank rates. Europe’s banking sector thrives in 2025; Stronger organic growth has left many lenders with excess capital, raising expectations that mergers and acquisitions will increase in 2026.
Shares were last down 4.8%, up just 1.2% so far this year after rising 62% in 2025.
NatWest shares from the beginning of the year to date
“This acquisition creates the UK’s leading Private Banking and Wealth Management business, providing the scale and capabilities needed to succeed in a market with significant growth potential,” Paul Thwaite, chief executive of NatWest Group, said in the statement. he said.
Evelyn Partners CEO Paul Geddes added that the deal marks an “exciting new chapter” for the asset manager.
NatWest has reportedly outbid rival bank Barclays for the merger in recent days. Sky News.
Evelyn Partners, formerly known as Tilney Smith & Williamson, offers services such as financial planning, discretionary investment management and its direct-to-consumer platform BestInvest. It is currently owned by private equity firms Permira and Warburg Pincus.
The deal, which is expected to be completed by this summer and is still subject to customary regulatory approvals, will be financed from NatWest’s existing resources and will reduce its capital by 1.3%.
NatWest will publish its fourth quarter results and provide a strategic update on Friday.
