Santander has announced a £2.65bn deal to acquire TSB, raising fears of branch closures and job losses across the combined group. The Spanish bank's UK arm said the acquisition would make it the third largest UK bank by personal current account deposits, behind Lloyds and Natwest.
The proposed deal, announced on Tuesday, follows a takeover tussle in Spain where Sabadell, TSB's current owner, faces a hostile bid from BBVA. The transaction requires Sabadell shareholder approval and could complete in early 2026, marking TSB's third major ownership change in 12 years.
Santander UK serves 14 million customers with 350 branches and 18,000 staff, while TSB has 5 million customers, 175 branches and 5,000 staff. The integration may lead to the disappearance of the TSB brand, which has been on the UK high street for 215 years, though Santander has not yet decided on the brand's future.
TSB has faced challenges since its 2018 IT meltdown that locked out millions of customers, leading to the resignation of its chief executive. The bank was spun off from Lloyds in 2013, floated in 2014, and bought by Sabadell in 2015.
Santander's executive chair Ana Botín said the acquisition demonstrates a strategic commitment to the UK, offering a financially attractive opportunity. TSB chief executive Marc Armengol called it an exciting next chapter, believing it will be an excellent fit for customers.
