Major British bank with five million customers set to be sold to high street rival after days of speculation

The Sun

12 hours ago

A MAJOR British bank with five million customers is set to be sold to a high street rival after days of speculation.
Santander have agreed a deal to acquire TSB from Sabadell for a whopping £2.65billion.
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The bank beat British rival Barclays which also put in a formal bid for the Sabadell-owned unit, according to sources.
Santander intends to integrate TSB in the Santander UK group, meaning it would become the second largest bank in the country by personal current account balances.
However, the final transaction remains subject to regulatory approvals and Sabadell shareholder approval.
The full transaction is expected to be completed in the first quarter of 2026.
TSB already boasts a nationwide network of 218 branches and outlets, and a growing digital presence.
It serves approximately 5 million customers, primarily in the personal and small business segments, with £34 billion in mortgages and £35 billion in deposits.
But with the latest buyout news, TSB combined with Santander would serve nearly 28 million retail and business customers nationwide.
And TSB customers will also have access to Santander's international network in a massive boost.
This means they can benefit from the group's leading technology platforms.
The latest acquisition appears to be another win for Santander as the company strengthens its position in one of its core markets.
It comes as Sabadell, which bought TSB in 2015 for £1.7bn, is seeking to fend off an billion-pound hostile approach from its domestic rival BBVA.
Santander has in the past year entertained bids from both NatWest and Barclays for its UK retail arm - but ultimately rejected both offers due to disagreements over price.
Ana Botín, Banco Santander's executive chair, said: "The acquisition of TSB represents a continuing strategic commitment to our customers in the UK, offering a compelling opportunity that is financially attractive to our shareholders and aligned with Santander's long-term objectives.
"It strengthens our franchise in a core market through the acquisition of a low-risk and complementary business that adds to our diversification.
"We are creating a stronger and more competitive business across key products such as personal current accounts where the combined business will become the second largest bank in the UK by market share.
"The transaction will accelerate our path to greater profitability in the UK and helps achieve a return on tangible equity of 16% by 2028.
"The acquisition also reflects our commitment to growing profitably through disciplined capital allocation. This acquisition meets our goal of achieving a return on investment above 20% and EPS accretion from year 1, while consuming limited capital and having low execution risk.
"Furthermore, the transaction will not affect Santander's existing distribution policy and 2025 targets.'
Meanwhile, CEO of Santander UK, Mike Regnier said:
"This is an excellent deal for customers combining two strong and complementary banks, creating one of the most substantial banks in the UK and materially enhancing the competitiveness of the industry.
'At Santander UK we have momentum in our strategy to become the best bank for customers in the UK by investing in technology and service and improving our processes and efficiency.
"This deal accelerates our transformation allowing us to enhance our customer proposition and invest more in innovative products and our digital offering, supported by the human touch service so many appreciate, not least in our new branch formats and enhancements across the country.
'We are fully committed to ensuring a seamless integration, by leveraging our market leading technology and significant experience.
"Maintaining the highest levels of service for customers across both banks will be a key priority and we will support all colleagues through the transition, as we invest in building a stronger bank for the future'.