£2.5bn Takeover Contenders: Barclays and NatWest Battle for Evelyn Partners
Two prominent high street banks, Barclays and NatWest Group, are competing in a contentious £2.5 billion bid for Evelyn Partners, a leading wealth management firm. Reports indicate that both banks have advanced to the second round of bidding in an auction for the company.
Other Bidders and Potential Offers
Alongside Barclays and NatWest, the Royal Bank of Canada is also said to be interested in acquiring Evelyn. Various private equity firms have also submitted proposals to purchase the firm. Though Lloyds Banking Group had previously contemplated making an offer, it remains uncertain whether they are still pursuing this opportunity.
Strategic Expansion for Major Banks
A successful acquisition of Evelyn would enhance the wealth management services offered by both Barclays and NatWest, with the latter already having a substantial presence through its Coutts division. NatWest’s CEO, Paul Thwaite, has expressed a willingness to consider acquisitions that present good value and align with the bank’s strategic goals, particularly since its transition back to full private sector ownership this year.
Evelyn’s Growing Assets
According to figures released in August, Evelyn managed assets totalling £64.6 billion at the end of June, underscoring the increasing demand for wealth management services in the UK market. Additionally, Canaccord Genuity’s wealth management division is available for sale, with estimates suggesting it could command over £1 billion.
Background on Evelyn Partners
Evelyn Partners is currently owned by private equity firms Permira and Warburg Pincus, following the merger of their respective entities, Tilney and Smith & Williamson, in 2020. Last year, the company divested its professional services segment to the buyout firm Apax Partners. The auction process is being orchestrated by bankers at Evercore.
Neither Barclays nor NatWest have commented publicly on the ongoing bidding process.
Source: Original Article
