Santander is set to acquire TSB, positioning itself as the UK’s third-largest bank as a result of the deal.
This acquisition could potentially lead to the disappearance of the TSB brand from the high street, as Santander has expressed its intention to «integrate TSB in the Santander UK group».
Santander has agreed to an initial payment of £2.65bn for TSB, with the final price anticipated to reach £2.9bn once undisclosed financial results are taken into account.
This price represents 1.5 times the value of TSB’s assets.
The transaction is contingent on approval from regulators and shareholders of TSB’s parent company, Banco Sabadell, with a projected completion date within the first three months of 2026.
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Following the merger, the combined entity will hold the third-largest number of personal account balances in the UK and rank fourth in terms of mortgage lending, serving a total of nearly 28 million customers, according to Santander.
Potential job losses may also be a consequence of this acquisition.
Santander‘s interest in submitting a bid for TSB was initially disclosed by Sky News.
TSB currently serves five million customers, offering both business and personal accounts, and ranks as the UK’s tenth largest lender for mortgages and deposits.
After undergoing staff and branch reductions last year, TSB presently employs approximately 5,000 staff members and operates 175 branches, making it the seventh largest branch network in the UK.
This acquisition comes shortly after speculation that Santander might exit the UK market, despite refutations from the Spanish-owned institution.
In recent months, Santander had rebuffed acquisition offers from competitors NatWest and Barclays.
Barclays had also pursued a bid for TSB.
Banco Sabadell stated that the sale of TSB is part of its strategy to concentrate on its operations in Spain, as mentioned by its CEO, Cesar Gonzalez-Bueno.
«This deal is highly beneficial for customers, as it merges two robust and complementary banks, establishing one of the most significant banks in the UK and significantly boosting industry competitiveness,» stated Mike Regnier, CEO of Santander UK.