Commercial Awareness Digest - 27th February 2026

The Surge in Financial Services M&A

By Zuha Malik

At the start of February, NatWest announced its £2.7bn acquisition of wealth management business Evelyn Partners. In the same month, Schroders agreed to a £9.9bn sale to US investor Nuveen. While these may appear to be isolated headline deals, they point to a broader trend of high-value financial services M&A being on the rise in the UK.

According to an EY report, the combined value of UK banking deals increased from £6.3bn to £9.5bn between 2024 and 2025, despite the overall number of transactions remaining flat. In other words, the market is not necessarily busier - but it is seeing bigger, more strategic deals. Similar growth has been observed in the insurance sector, driven largely by buyouts worth over £1bn.

NatWest’s move into wealth management reflects this strategic shift. Following a turbulent period that included controversy over Nigel Farage’s bank accounts and the resignation of former CEO Alison Rose, the bank appears to be repositioning itself for long-term growth. Wealth management offers more stable, recurring fee income compared to traditional retail banking, making it an attractive area for expansion. Rather than pursuing multiple small acquisitions, NatWest has opted for a single, transformative purchase that significantly strengthens its private banking capabilities.

For City law firms, this shift towards fewer but higher-value transactions creates significant opportunities. Slaughter and May advised NatWest on the acquisition, marking its first publicly announced mandate for the bank. NatWest has historically had close ties with Linklaters, whose former senior partner Gideon Moore previously served as the bank’s chief legal officer. However, Linklaters instead advised the sellers, Permira and Warburg Pincus, on this transaction.

The split advisory roles underline how competitive financial institutions work has become. Even long-standing relationships do not guarantee the lead mandate when transactions are large and strategically important. As deal values rise, banks and asset managers are likely to seek advisers with strong sector credentials and experience handling complex, high-value transactions.

A New Energy Deal Between the UK and California

By Esme Glover

On the 16th of February 2026, UK Secretary of State for Energy Security and Net Zero, Ed

Miliband, and California Governor Gavin Newsom signed a Memorandum of Understanding (MoU) which reinforced their desires for a collective effort in progressing movements towards clean energy. On a practical level, the deal encourages greater and more innovative technology sharing between the United Kingdom and California, as well as an increase in transatlantic investment in clean technology.

The timing of the agreement is particularly significant given political divisions over climate policy in the United States. The Trump administration has taken a more sceptical approach towards the energy transition, including efforts to slow offshore wind development, reduce financial incentives for electric vehicles (EVs) and by withdrawing from the United Nations Framework Convention on Climate Change (UNFCCC). As a result, individual states such as California have increasingly pursued their own climate strategies. California is already a global pioneer in renewable energy investment and regulation, and its partnership with the UK demonstrates how state governments are playing a growing role in driving climate cooperation independently of national policy.

In the UK, climate policy is also influenced by economic pressures. Prime Minister Keir Starmer has also faced increased pressure from Ed Miliband to provide more “clarity” with regards to his stance on climate change. His inconsistent and changing approach might be due to increased consciousness among British citizens of how clean energy might impact their energy bills, which are already at an all time high. Considering the ongoing cost of living crisis which is having implications throughout the British economy and society, the Prime Minister is facing the challenge of balancing ambitious net-zero commitments with the social discontent with the cost of living crisis.

As a significant number of law firms are involved in energy work, firms that work specifically with the United Kingdom and California may face an influx of clean energy matters that they will be required to work on. Greater transatlantic investment is likely to facilitate an increased number of Mergers and Acquisitions and joint ventures, as clean energy companies seek to enhance their competitiveness in the more supportive regulatory environment after the deal. Alongside an influx of corporate work, the deal might also increase law firms’ regulatory work. This is due to the need for their clients to navigate the complexities of two distinct regulatory systems present in the UK and the US, as well as an uncertain political attitude in both nations towards tackling climate change.