Santander to Acquire TSB from Sabadell in Major UK Banking Deal
Santander has confirmed a landmark deal to acquire TSB from its Spanish parent firm, Banco Sabadell, beating out rival Barclays in a high-stakes bidding process.
The acquisition, announced today, will see TSB integrated into Santander UK, creating what executives say will become the second-largest bank in the UK by market share in personal current accounts.
The transaction is subject to regulatory and shareholder approval, with full completion expected by the first quarter of 2026.
A Game-Changing Merger for UK Banking
TSB currently operates 218 branches and outlets and serves around five million customers with £34 billion in mortgages and £35 billion in deposits. The combined entity will serve nearly 28 million retail and business customers nationwide.
In a statement, Ana Botín, Executive Chair of Banco Santander, said:
“The acquisition of TSB represents a continuing strategic commitment to our customers in the UK.
This is a financially attractive and low-risk transaction that strengthens our franchise and accelerates our profitability goals.”
Botín added the deal would deliver over 20% return on investment and boost earnings per share (EPS) from the first year, without impacting Santander’s existing dividend policy or 2025 targets.
Leadership Reactions
Mike Regnier, CEO of Santander UK, said the acquisition would create a more competitive and customer-focused institution:
“This is an excellent deal for customers, combining two strong and complementary banks.
At Santander UK, we’re focused on becoming the best bank in the UK through investment in tech, service, and efficiency.”
Marc Armengol, CEO of TSB, praised the move, calling it a positive step for TSB’s loyal customers:
“TSB is a truly special bank, run by a first-class team.
Joining Santander Group marks an exciting new chapter.”
Industry Impact
This acquisition marks a major moment in UK retail banking, with Santander outmaneuvering both Barclays and NatWest, who had previously shown interest in TSB or Santander’s UK operations. The move underscores continued consolidation in the UK banking sector as firms strive for scale, efficiency, and digital transformation.
The UK’s financial regulators and Sabadell shareholders will now assess the deal, with full integration likely to begin in 2026 if approved.
