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Banco Santander SA on Friday said its UK arm has completed the acquisition of TSB Group PLC from Spanish peer Banco de Sabadell SA, forming as a result the third largest bank in the UK by current account balances and fourth largest mortgage lender. The takeover deal, first announced back in July last year, was closed on Thursday, Santander said. It paid Sabadell £2.65 billion for TSB’s share capital, plus an additional £213 million to cover the rise in TSB’s tangible net asset value between April 1, 2025 and April 30, 2025. This was based on Sabadell’s estimate and is subject to final adjustment, Santander said. TSB will be merged into Santander UK, which itself is the product of Madrid-based Santander’s acquisition of Abbey National two decades ago. The deal will bring £400 million in cost synergies to Santander UK, supporting its aim to reach a 16% return on tangible equity by 2028. London-based Santander UK will have a CET1 capital ratio of 14%, above the regulatory requirement. ‘This is excellent news for UK banking with the acquisition representing the single largest investment in the sector for over 15 years,’ said Santander UK Chief Executive Officer Mahesh Aditya. ‘Bringing TSB into the Santander group strengthens competitiveness in the market and is an important step in creating the best bank for customers.’ Shares in Banco Santander were up 0.3% at €10.38 on Friday morning in Madrid. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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