Santander said on Tuesday that she had agreed to the agreement of all discussions to obtain TSB from Banco de Sabadell for 2.65 billion pounds, which strengthens its position in the retail banking services market in the United Kingdom.
The TSB deal will see an integrated in the Santander UK collection, making it the third largest bank in the UK through personal current account balances. It will also be the fourth bigger when it comes to mortgages.
Santander said that the TSB acquisition values are expected 2026 profits after synergy and the value of the concrete book 1.45X as of March 31.
“The TSB acquisition is a continuous strategic commitment to our UK customers,” said Anna Putin, CEO of Panco Santander, described the deal as “financially attractive” and is in line with long -term goals.
The deal is expected to achieve a return on investing for more than 20 % and increased Santander UK’s return on concrete stocks from 11 % in 2024 to 16 % by 2028.
It also brings the expected cost synergy at least 400 million pounds, equivalent to 13 % of the joint cost base.
The CEO of Santander UK Mike RegNier described the move as a “excellent deal for customers”, which is the creation of one of the largest banks in the country.
TSB, which serves 5 million customers and holds 34 billion pounds from real estate loans, will add to the reach of Santander, helping the joint group to serve approximately 28 million customers. The deal is expected to be completed in the first quarter of 2026, pending organizational approvals and shareholders.