Banking giant Santander shows interest in acquiring TSB following Sabadell's decision to put the British lender on the market for sale
Spanish banking giant Santander is reportedly showing interest in acquiring British lender TSB, according to recent reports. TSB, with 175 UK branches, has been put up for sale by its Spanish owner Banco Sabadell, which has received preliminary expressions of interest.
Santander's interest in TSB implies that the bank's CEO, Ana Botin, might be open to expansion in the UK market. Analysts expect UK-listed NatWest to be the most likely buyer for TSB following the Treasury's sale of its last stake in the bank last month.
Sabadell is considering selling TSB to counterbalance pressures from a £9 billion hostile takeover attempt by Spanish lender BBVA. If the deal goes through, it would significantly expand Santander's UK branch network, combining its existing branches with TSB's.
Other potential suitors for TSB have not emerged publicly, with any previous interest in other lenders like Metro Bank from private equity firms seeming to have faded. The potential deal comes at a time of consolidation in UK retail banking.
Enrichment Data: The discussion regarding the possible takeover of TSB by Santander is still preliminary, with the bank evaluating the opportunity amid its broader strategic priorities in the UK market. The valuation of TSB is still debated, with estimates ranging from £1.7 billion to as high as £2.6 billion. Banco Sabadell's decision to sell TSB is partly to offset the pressure from a hostile takeover attempt by BBVA. (sources: [1][2][3][4][5])
Investing in the UK market seems to be a strategic priority for Santander, as indicated by their reported interest in acquiring TSB, a UK lender with 175 branches. This potential move could lead to a significant increase in Santander's presence in UK banking, thanks to the combination of their current branches with those of TSB. The discussion about this possible takeover is still preliminary, and the valuation of TSB is being debated, possibly ranging from £1.7 billion to as high as £2.6 billion.
