By Levi Winchester
Santander has struck a deal to purchase its banking competitor TSB for 拢2.65 billion, raising concerns about the future presence of TSB branches on high streets. The acquisition was publicised July 1, igniting worries over potential closures of TSB branches amid significant expansion for Santander.
Once the merger is finalised, the amalgamated entity will serve nearly 28 million customers, becoming the UK’s third-largest bank in terms of personal current account deposits, trailing only behind Lloyds and NatWest.
Previous speculation about TSB’s future was confirmed last month when Sabadell, TSB’s Spanish parent company, disclosed it might sell off its UK arm. Interest in TSB was also shown by Barclays, amidst competitive bids.
TSB parted ways from the Lloyds Banking Group following a demerger in 2013 that saw the splitting of Lloyds TSB into two separate entities. Then, in 2015, Sabadell acquired TSB in a deal worth 拢1.7 billion, reports the Mirror.
How does this impact TSB customers?
Customers of TSB are now pondering what repercussions this business move may have for them.
As part of the acquisition, Santander has expressed intentions to incorporate TSB within the broader Santander Group fold, suggesting that the TSB branding could vanish from British high streets in due course; though no specific information has been released thus far.
For the time being, operations continue as usual at both TSB and Santander branches. However, during an analyst presentation, Santander indicated forthcoming branch consolidations and mentioned plans for a “rationalisation” of their collective branch network.
This includes examining property “overlaps” and potentially reducing the number of physical sites.
The acquisition is pending shareholder approval and, if successful, is expected to be completed within the first three months of 2026. Presently, TSB operates around 175 high street branches, while Santander has 349 across the UK.
Douglas Grant, Group CEO of Manx Financial Group, stated: “While it will undoubtedly strengthen Santander’s UK presence, endorse the wider market, and deliver cost synergies, these are likely to involve significant branch closures, something the regulator will scrutinise closely.”
What does TSB say?
Marc Armengol, TSB’s chief executive, commented: “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.
“Today’s announcement represents the next exciting chapter for this successful business, as part of Santander, a highly regarded banking group. I believe this will prove to be an excellent fit for our loyal customers.”
What does Santander say?
Mike Regnier, CEO of Santander UK, said: “This is an excellent deal for customers combining two strong and complementary banks, creating one of the most substantial banks in the UK and materially enhancing the competitiveness of the industry.
“At Santander UK we have momentum in our strategy to become the best bank for customers in the UK by investing in technology and service and improving our processes and efficiency.
“This deal accelerates our transformation allowing us to enhance our customer proposition and invest more in innovative products and our digital offering, supported by the human touch service so many appreciate, not least in our new branch formats and enhancements across the country.
“We are fully committed to ensuring a seamless integration, by leveraging our market leading technology and significant experience.
“Maintaining the highest levels of service for customers across both banks will be a key priority and we will support all colleagues through the transition, as we invest in building a stronger bank for the future.”