Spanish bank Santander is set to acquire British high street lender TSB for £2.65 billion. This proposed deal, announced on Tuesday evening, is a result of Sabadell's decision to sell TSB as it faces an €11bn hostile takeover approach from rival BBVA. The acquisition would make Santander UK the third-largest UK bank in terms of personal current account deposits, but it raises fears of potential job cuts, branch closures, and the possible disappearance of the TSB brand.
Santander to buy TSB for £2.65bn amid fears of branch closures and job losses
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AI Summary
TL;DR: Key points with love ❤️Spanish bank Santander is set to acquire British high street lender TSB for £2.65 billion. This proposed deal, announced on Tuesday evening, is a result of Sabadell's decision to sell TSB as it faces an €11bn hostile takeover approach from rival BBVA. The acquisition would make Santander UK the third-largest UK bank in terms of personal current account deposits, but it raises fears of potential job cuts, branch closures, and the possible disappearance of the TSB brand.
Trending- 1 2008: Lloyds received a £20.3bn government bailout.
- 2 2013: TSB was hived off from Lloyds.
- 3 2014: TSB floated on the UK stock exchange.
- 4 2015: TSB was bought by Sabadell.
- 5 2018: Botched launch of a new IT system at TSB, leading to the resignation of CEO Paul Pester.
- 6 2020: Sabadell hired Goldman Sachs to review the prospects for a TSB sale.
- 7 Months leading up to July 2025: Rumours circulated about Santander pulling out of the UK.
- 8 Tuesday evening, July 1, 2025: The proposed deal was announced.
- 9 Early 2026: TSB is expected to change hands if the deal is approved by Sabadell’s shareholders.
- Santander UK becoming the third-largest UK bank in terms of personal current account deposits
- Fears of job cuts and branch closures within the combined group
- Potential disappearance of the TSB brand
- Third major ownership change for TSB in 12 years
What: Santander's acquisition of TSB, a British high street lender.
When: Announced Tuesday evening (July 1, 2025). The deal is expected to close in early 2026.
Where: United Kingdom (TSB, Santander UK) and Spain (Santander, Sabadell, BBVA).
Why: Sabadell is selling TSB due to facing a hostile takeover bid from BBVA. Santander views the acquisition as a strategic commitment to the UK market, a financially attractive opportunity, and a way to strengthen its franchise.
How: Through a proposed deal and acquisition process, which requires approval from Sabadell's shareholders.