Willis Towers Watson in Talks to Purchase Cushon
Global advisory, broking, and solutions company, Willis Towers Watson (WTW), is reportedly in discussions to acquire Cushon, a platform for workplace retirement schemes. According to a report by Sky News, the potential acquisition comes after an auction process that saw several interested companies from the sector.
However, the financial details of the purported transaction remain undisclosed at this stage. If successful, this acquisition could significantly impact both companies and the wider sector.
Details about Cushon and the Potential Acquisition
Cushon, currently owned by the NatWest Group, manages approximately £3.7bn (around $4.89bn) in assets. The company provides workplace pension and savings solutions to over 650,000 members linked to more than 21,000 employers. If an agreement is reached, Cushon could be valued at more than £150m, as reported by Reuters. However, it’s worth noting that there is still a possibility that no agreement will be finalized.
NatWest Group became the majority owner of Cushon in June 2023 after purchasing a controlling interest for £144m. Despite this, Cushon’s management retained a 15% stake in the company.
Strategic Divestment Reflects NatWest’s Focus
The potential sale of Cushon parallels NatWest chief Paul Thwaite’s objective to concentrate on key goals following the bank’s transition from taxpayer ownership earlier this year. These goals include simplifying operations across the bank and more active balance sheet and risk management.
Cushon’s product range includes workplace pension plans and various Individual Savings Accounts (ISAs), such as Junior ISAs, Lifetime ISAs, and General Investment Accounts.
Statements from Involved Parties
When asked about the ongoing talks, a spokesperson from NatWest was quoted by Reuters as saying: “Our focus remains on delivering for our customers.” Meanwhile, WTW has remained silent about the negotiations. The potential acquisition of Cushon by WTW could mark a significant shift in the landscape of workplace retirement schemes and savings solutions.
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