The pensions giant WTW is in talks to buy the workplace retirement schemes platform owned by NatWest Group, the FTSE-100 lender.

Sky News has learnt that WTW – formerly known as Willis Towers Watson – has emerged as the frontrunner to buy Cushon from NatWest following an auction which attracted several leading industry names.

The price under negotiation was unclear on Friday.

Cushon manages assets worth £3.7bn, according to the latest figures provided by NatWest, which bought a controlling stake in the business for £144m two years ago.

The pensions business serves roughly 650,000 members across approximately 21,000 employers.

NatWest owns an 85% stake in Cushon, with the remainder held by the subsidiary’s management.

For NatWest, a sale would reflect chief Paul Thwaite‘s determination to refocus the bank – which shed the last vestiges of taxpayer ownership earlier this year – on its core strategic priorities.

These include a bank-wide simplification programme and more active balance sheet and risk management.

Cushon offers workplace pension products as well as a range of workplace ISAs, including Junior ISAs, Lifetime ISAs and General Investment Accounts.

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NatWest’s acquisition of the business was aimed at diversifying its non-interest income by offering Cushon’s products to the bank’s commercial and business banking customers.

The government announced major pensions reforms this year aimed at driving greater scale and reducing unnecessary bureaucratic expenses, with a view to defined contribution schemes managing at least £25 billion in assets by 2030.

Chancellor Rachel Reeves this week hit salary sacrifice pension schemes with a multibillion pound tax raid, which has caused uproar within the industry.

NatWest and WTW have both been contacted for comment.