Sabadell weighs sale of TSB
Spain's Banco Sabadell says it has received expressions of interest from potential buyers for a takeover of UK subsidiary TSB.
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In a statement, the Spanish bank says that it has received "preliminary nonbinding expressions of interest for the acquisition of the entire share capital of TSB Banking Group". Sabadell adds that it "will assess any potential binding offer it may receive" and that "naturally, any transaction would be subject to the satisfaction of all legal obligations".
The offloading of TSB comes as the Spanish bank seeks off a hostile takeover by neighbouring bank BBVA.
A sale of TSB could generate between £1.7bn and £2bn, a source told the Financial Times. Potential bidders could include Barclays, NatWest, Santander UK and HSBC.
Sabadell acquired TSB in 2015 for £1.7 billion. The UK lender has about five million customers in the UK and reported pre-tax profits of £285mn on income of £1.14 billion last year, with total assets of £46.1 billion at the end of 2024.
A botched upgrade to Sabadell's core banking system in the wake of the takeover resulted in a meltdown of TSB's IT systems, leaving users out in the cold for months.
The sale process reprents the latest in a flurry of takeover activity in the UK banking sector, following reports that Metro Bank is being eyed up Pollen Street Capital, and rumours concerning the uncertain future of Banco Santander's UK unit.
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