NatWest to Acquire Sainsbury's Banking Business in £125 Million Deal, Serving 1.8 Million Customers

Jun 20, 2024, 06:45 AM

NatWest has agreed to acquire Sainsbury's banking business in a significant consolidation move among British lenders. The deal involves the transfer of approximately £2.5 billion in assets and liabilities, including £1.4 billion of unsecured loans, £1.1 billion of credit card balances, and £2.6 billion of customer deposits. This acquisition will see NatWest take over 1 million customer accounts from Sainsbury's Bank. The transaction is valued at £125 million. Sainsbury's Bank, which serves 1.8 million customers, is expected to benefit from the stability and resources of NatWest. Additionally, the owners of the Sainsbury Bank Tier 2 bond with a massive coupon of 10.5% will see early returns.