Spain’s Banco Sabadell has announced that it has received preliminary expressions of interest for a potential acquisition of its UK subsidiary, TSB Banking Group. In their statement, the bank indicated that it will evaluate any binding offers received and emphasized that any transaction must comply with relevant legal requirements.
This move follows Sabadell’s efforts to mitigate a hostile takeover attempt from the nearby BBVA bank. Sources suggest that selling TSB could yield between £1.7 billion and £2 billion, with potential bidders including Barclays, NatWest, Santander UK, and HSBC.
Sabadell purchased TSB in 2015 for £1.7 billion. The UK-based lender serves approximately five million customers and reported pre-tax profits of £285 million, generating an income of £1.14 billion last year, with total assets amounting to £46.1 billion at the end of 2024.
The bank’s challenges have included a problematic upgrade to its core banking system, which led to significant IT disruptions at TSB, impacting services for customers over an extended period.
This latest development is part of a broader trend in the UK banking sector, marked by increasing acquisition activity, including interest in Metro Bank from Pollen Street Capital and speculation surrounding the future of Banco Santander’s UK operations.