View more on these topics

TSB in takeover talks with Spanish bank

TSB has received a “preliminary proposal” from Spanish bank Sabadell to purchase all outstanding shares in the UK lender.

An all-cash initial bid of 340p per share has been made, valuing the company at around £1.7bn. TSB says it would recommend accepting such an offer pending agreement of “other terms and conditions”.

TSB’s share price has soared 26 per cent on the back of the news.

TSB says: “Sabadell believes that the current banking industry dynamics and macro-economic environment make the UK an attractive market for future investment.

“The board of TSB believes that Sabadell could support and accelerate TSB’s retail growth strategy and accelerate the expansion of TSB’s presence in the SME sector.”

TSB accounted for 0.7 per cent of the £205bn market in 2014, its debut year as a standalone lender, with £1.47bn in gross new lending.

Pre-tax profit reached £133.7m, more than half of which was generated by a portfolio of Lloyds Banking Group loans assigned to TSB, worth around £71m.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. “the bank that’s not like other banks”.

    If it is going to be taken over by a Spanish bank I can’t help thinking that is rather likey Abbey National, Alliance & Leicester and Bradford & Bingley.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com