Santander has reached an agreement to acquire TSB Banking Group plc from Banco de Sabadell for £2.65bn in cash.
UK retail bank TSB has a nationwide network of 175 branches and outlets, and a growing digital presence. It serves approximately 5m customers, primarily in the personal and small business segments, with £34bn in mortgages – a 2% market share in the UK – and £35bn in deposits.
The acquisition will make Santander UK the third-largest bank in the country by personal current account balances, and fourth in mortgages.
When combined, the two banks will serve nearly 28m retail and business customers nationwide, giving TSB customers access to Santander’s international network and allowing them to benefit from the group’s technology platforms.
“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,” said Mike Regnier, CEO of Santander UK.
“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”.
The transaction remains subject to regulatory approvals and Sabadell shareholder approval. Completion of the transaction is expected to occur in the first quarter of 2026.