NatWest has struck to a deal to acquire the banking arm of British grocer Sainsbury's.
The deal, which is set to grow NatWest's assets by £2.5bn, is expected to complete in the first half of 2025.
Sainsbury's is the second British grocer to offload its banking arm this year, after Tesco struck a deal with Barclays to offload most of its banking activity in a £600m pound deal.
NatWest's acquisition is the first major transaction executed by CEO Paul Thwaite after he formally took the role last year.
As well as a complementary customer base, the transaction is expected to add scale to our credit card and unsecured personal lending business within existing risk appetite," Thwaite said.
"NatWest Group has a strong track record of successful integration, and we are focussed on ensuring a smooth transition for customers."
Customer accounts at NatWest are expected to rise by around a million.
Assets acquired include £1.4bn in unsecured personal loans, £1.1bn in credit card balances and around £2.6bn of customer deposits.
NatWest will recieve an agreed £125m consideration payment from Sainsbury's upon the deals completion.
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