Spanish banking giant Santander is set to significantly enhance its position in the UK market, with its proposed £2.65 billion acquisition of TSB poised to make it the third-largest UK bank by personal current account deposits. This ambitious move, however, comes shadowed by anxieties over job cuts and branch closures.
The impetus behind this major acquisition lies in a complex corporate power play in Spain. TSB’s current owner, Sabadell, is strategically selling off its UK asset to fortify itself against an €11 billion (£9.4 billion) hostile bid from its rival, BBVA, making TSB a critical piece in a larger financial chessboard.
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, highlighted the acquisition as a “continuing strategic commitment” to UK customers and a “financially attractive” opportunity. Yet, for TSB’s 5 million customers and 5,000 staff, the looming integration brings uncertainty, particularly concerning the future of branches and the very TSB brand.