Santander is making a clear bid for increased dominance in the UK banking sector with its proposed £2.65 billion acquisition of TSB. This strategic move, which would elevate Santander to the third-largest bank by personal current account deposits, signals its intent to be a leading force on the high street.
The underlying reason for this major deal stems from a high-stakes corporate showdown in Spain, where TSB’s current owner, Sabadell, is fighting off an €11 billion (£9.4 billion) hostile approach from its rival, BBVA. Sabadell’s decision to sell TSB is a strategic defensive move to strengthen its own 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.
While Santander’s executive chair, Ana Botín, highlighted the “compelling opportunity” and strategic fit, the acquisition also raises concerns for TSB staff and customers. The integration process is likely to lead to a review of branch networks and staffing levels, and the very future of the TSB brand remains undecided.
