TSB is embarking on a new chapter, transitioning from Sabadell’s ownership to that of Spanish banking giant Santander in a £2.65 billion deal. This significant change, however, is not without its anxieties, particularly concerning the future of TSB’s branches and its workforce.
The decision by TSB’s current owner, Sabadell, to sell its UK subsidiary is a direct consequence of a high-stakes corporate battle unfolding in Spain. Sabadell is attempting to fend off an €11 billion (£9.4 billion) hostile takeover bid from rival BBVA, making the sale of TSB a strategic defensive measure.
If approved by Sabadell’s shareholders, this would be the third major ownership change for TSB in just over 12 years, highlighting a consistent pattern of transformation for the bank. Its journey includes its spin-off from Lloyds and its subsequent acquisition by Sabadell.
Ana Botín, Banco Santander’s executive chair, lauded the acquisition as a “compelling opportunity” and a strategic fit for Santander’s long-term objectives in the UK. However, the fate of the TSB brand, a fixture on the UK high street for 215 years, remains undecided, adding to the uncertainty surrounding this new chapter.
TSB’s New Chapter: From Sabadell to Santander
