Spain's Santander has agreed to acquire TSB, the UK subsidiary of Sabadell, for £2.9 billion. The all-cash deal, announced on July 1, 2025, is subject to shareholder approval and is expected to close in the first quarter of 2026.
This acquisition will give Santander approximately 28 million customer relationships in the UK, making it the third-largest bank in the country by personal current account balances and the fourth-largest by mortgage balances, with a 12% market share. This places Santander among major players like Barclays and HSBC.
Sabadell acquired TSB in 2015 for £1.7 billion. The acquisition is expected to create significant value for Santander shareholders, including a special dividend of €0.50 per share. The total shareholder return over the next 12 months will be €3.8 billion.
The acquisition is a significant step for Santander to strengthen its position and increase competitiveness in the UK market.