By Ben Hurst
The TSB brand faces potential extinction from Britain’s high streets after Spanish banking giant Santander agreed a £2.65 billion takeover deal, sparking concerns over widespread branch closures.
Sabadell, TSB’s Spanish parent company, announced last month it was exploring a sale of its UK operations whilst fending off its own hostile takeover bid.
Santander confirmed it “intends to integrate TSB in the Santander Group” as part of the acquisition, which requires shareholder approval to proceed.
The merger would establish the UK’s third-largest bank by personal current account numbers, combining TSB’s 175 branches and 5,000-strong workforce with Santander’s 349 outlets and 18,000 employees.
Both institutions have already reduced their physical presence significantly as customers increasingly embrace digital banking services.
The consolidation has heightened fears of additional redundancies and site closures across the enlarged banking group.
During an analyst briefing, Santander outlined plans for “rationalisation” of the combined branch network, specifically targeting “overlaps” in property portfolios.
The deal marks a decade since Sabadell acquired TSB for £1.7 billion to establish its UK presence, just one year after Lloyds had floated the bank on the stock exchange.
TSB recently reported near-doubled first-quarter profits driven by cost-reduction measures and stronger mortgage lending ahead of April’s stamp duty changes. Marc Armengol, the chief executive of TSB, has expressed his confidence in the future of the bank following a significant development: “TSB is a truly special bank, run by a first-class team that deliver trusted service and support for customers, day in and day out.”
He further explained the implications of the latest move: “Today’s announcement represents the next exciting chapter for this successful business, as part of Santander, a highly regarded banking group.”
Armengol also reassured stakeholders, stating: “I believe this will prove to be an excellent fit for our loyal customers.”
On the other side of the partnership, Ana Botin, Banco Santander’s executive chairwoman, said: “The acquisition of TSB represents a continuing strategic commitment to our customers in the UK, offering a compelling opportunity that is financially attractive to our shareholders and aligned with Santander’s long-term objectives.”
Botin highlighted the strategic benefits of the acquisition: “It strengthens our franchise in a core market through the acquisition of a