Santander’s £2.65 billion acquisition of TSB is a clear strategic play to significantly boost its personal current account deposits in the UK, aiming to become the third-largest player behind Lloyds and Natwest. This focus on a core banking product highlights Santander’s intent to gain market share.
The impetus behind this major acquisition lies in a complex corporate power play in Spain, where TSB’s current owner, Sabadell, is battling an €11 billion (£9.4 billion) hostile takeover bid from BBVA. Sabadell’s decision to offload TSB is a defensive measure to strengthen its financial position.
Subject to approval from Sabadell’s shareholders, the deal could see TSB change hands in early 2026, marking its third major ownership change in just over 12 years. This includes its spin-off from Lloyds and its subsequent acquisition by Sabadell, underscoring a period of considerable flux for the bank.
Ana Botín, Banco Santander’s executive chair, emphasized the acquisition as a “compelling opportunity” that strengthens their UK franchise through a “low-risk and complementary business.” Despite these strategic benefits, the human cost of integration, including potential job losses and branch closures, remains a key concern.
