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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.

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  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.

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