What Santander’s takeover of TSB means for customers
Santander is set to buy rival TSB for £2.65 billion. What does it mean for customers, and could we see the TSB brand disappear from the high street?


Santander has reached an agreement to acquire TSB from Sabadell for £2.65 billion.
The takeover will create Britain's third largest bank by share of personal current accounts, behind Lloyds and NatWest. It will add five million customers to Santander UK’s 14 million.
Santander beat rival bank Barclays to buy TSB, which also put in a formal bid.
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The deal still has to be agreed by the shareholders of Sabadell, which owns TSB. If it goes ahead, it will follow Nationwide’s takeover of Virgin Money, which completed last year.
Marc Armengol, CEO of TSB, said the announcement “represents the next exciting chapter for this successful business, as part of Santander Group, a highly regarded banking group. I believe this will prove to be an excellent fit for our loyal customers”.
TSB has previously been affected by a dip in profits, as well as a class action by so-called “mortgage prisoners”. In 2018, the bank suffered an IT meltdown, which left customers unable to access online accounts for several weeks. It was fined almost £49 million by the regulator.
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.”
What does Santander’s takeover of TSB mean for customers?
Santander says it “intends to integrate TSB in the Santander UK group”, which means the TSB name could disappear from UK high streets.
Regnier said "we haven't made any decisions yet" but "we tend to use the Santander brand on the high street around the world".
There are no immediate changes for customers of either bank, in terms of how they bank or use or open financial products. However, as and when the deal goes ahead, there could be changes to products, branch closures and job cuts.
TSB has a nationwide network of 175 branches and outlets, while Santander has about 349 banks. Where there is both a TSB and Santander branch in the same town, Santander may decide to close one of them.
Santander announced in March the closure of 95 bank branches across the UK, putting 750 jobs at risk, as it focuses more on digital banking.
For now, it is business as usual as the two banks progress the deal. The transaction needs regulatory approvals and Sabadell shareholder approval to go ahead.
Why is TSB being sold – and when will the deal be completed?
The takeover announcement means Santander has reached an agreement to acquire 100% of TSB Banking Group from Banco de Sabadell, with a valuation of £2.65 billion (about €3.1 billion) in an all-cash transaction.
The deal isn’t set in stone yet as it is still subject to approval by shareholders. Sabadell will submit the deal to shareholders at an extraordinary general meeting on 6 August. Regulatory approvals will then follow.
If everything is agreed, the takeover will likely happen in the first three months of 2026.
Sabadell is selling TSB as it attempts to fend off a long-running hostile takeover approach from Spanish rival BBVA.
If the deal goes ahead, it will end months of rumours over whether Santander would pull out of the UK, sparked by reports that its Spanish bosses were frustrated by UK rules and the fallout from the car finance commission scandal.
Instead, Santander is further cementing its position in this country. Ana Botín, Banco Santander’s executive chair, 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.”
Santander has a track record of buying up British banking brands. Past takeovers including Abbey, Bradford & Bingley and Alliance & Leicester.
A sale would be the latest step in an eventful history for TSB. It was once owned by Lloyds, which was forced by the European Commission to spin off the business as a separate brand after Lloyds received a £20 billion government bailout in 2008.
TSB floated on the UK stock exchange in 2014 and was bought by Sabadell a year later in a deal worth £1.7 billion, marking one of the biggest cross-border banking deals since the financial crisis.
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Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.
She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times.
A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service.
Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.
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