Banco Santander and Barclays are currently the top contenders in the race to acquire Banco Sabadell’s UK unit, TSB, according to a report by Bloomberg. Sabadell is considering selecting one of these banks for negotiations, although a deal is not guaranteed at this stage. Representatives from all parties involved have not provided any comments on the matter.
Cesar Gonzalez-Bueno, the CEO of Sabadell, has stated that a potential sale of TSB is not a “poison pill” and will only move forward if it aligns with the bank’s strategic objectives. A decision on the sale is expected before the unveiling of Sabadell’s new plan on 24 July.
This potential sale comes amidst an unsolicited €11bn takeover bid for Sabadell by BBVA. Spanish authorities have imposed a minimum three-year waiting period for the integration of BBVA and Sabadell, aiming to protect jobs and financial stability. The Spanish government has mandated that BBVA and Sabadell remain separate legal entities with independent management for the foreseeable future.
Selling TSB could limit BBVA’s access to a valuable asset, as the bank reported £285mn in pre-tax profits and £46.1bn in assets in 2024, serving 5 million UK customers. Financial Times sources estimate that a sale could value TSB between £1.7bn and £2bn.
Barclays, known for its recent acquisitions in the UK market such as Kensington Mortgages and Tesco Bank, has been focusing on strengthening its UK operations to boost profitability. On the other hand, Santander has been closing branches and reducing jobs in the UK to improve its overall performance.
The original article “Santander and Barclays in final race to acquire TSB Bank” was published by Retail Banker International, a brand owned by GlobalData. The information provided is for general informational purposes only and should not be relied upon as professional advice. It is recommended to seek professional advice before making any decisions based on the content provided.
