LONDON, 2025-06-16 20:14:00 – Sabadell is exploring a potential sale of its British bank, TSB, as it navigates an €11 billion hostile takeover bid from its domestic rival, BBVA. This move comes amidst a complex financial landscape, as the Spanish lender aims to fend off BBVA’s advances.
TSB’s Future Uncertain Amidst Takeover Battle
Sabadell considers selling TSB, its UK arm, due to a hostile takeover attempt from BBVA, sparking uncertainty.
- Sabadell is considering selling TSB.
- BBVA launched an €11 billion hostile takeover bid.
- Potential bidders for TSB could include Barclays, NatWest, Santander UK, and HSBC.
Is Sabadell looking to sell its UK bank, TSB? Yes, the Spanish lender Sabadell is considering a sale of TSB, its British banking unit, amidst an ongoing takeover battle with BBVA. The sale process is underway, with documents circulated to potential buyers and access granted for due diligence.
Sabadell is working with advisors to explore the sale of TSB. Sources familiar with the matter confirmed this to the Financial Times. The bank has been in contact with potential bidders for the unit. Interested parties are expected to submit offers this month.
In response to reports, Sabadell stated on Monday evening that they had received “preliminary nonbinding expressions of interest for the acquisition of the entire share capital of TSB Banking Group.” They added that “Banco Sabadell will assess any potential binding offer it may receive… any transaction would be subject to the satisfaction of all legal obligations.”
Sabadell acquired TSB, previously owned by Lloyds Banking Group, in 2015 for £1.7 billion. This acquisition was part of Sabadell’s strategy to expand internationally and diversify away from Spain. However, the bank has been embroiled in a takeover battle with BBVA for over a year, raising questions about TSB’s future.
The Players and the Stakes
Spain’s government, which previously voiced opposition to BBVA’s takeover of Sabadell, has subjected the bid to a full review by cabinet ministers. If the merger were to proceed, it would create the second-largest player in Spain’s loan market, surpassing Santander but falling short of CaixaBank.
Potential buyers for TSB could include Barclays, NatWest, Santander UK, and HSBC. The specific parties that have approached Sabadell regarding a deal remain unclear.
TSB reported pre-tax profits of £285 million on £1.14 billion in income last year. At the end of 2024, the bank had total assets of £46.1 billion and served about 5 million customers in the UK.
Impact on the Banking Industry
This potential sale is the latest attempt at deal-making within Britain’s banking sector. It follows Santander’s rejection of bids from NatWest and Barclays for its UK retail bank, as reported previously. The price Sabadell is seeking for TSB isn’t yet public, but one source estimates it could generate between £1.7 billion and £2 billion.
Returning proceeds from a sale to shareholders could help maintain their support during the BBVA takeover saga, according to sources. Since its launch in May 2024, BBVA’s hostile bid has become one of the most contentious takeover sagas in Spain in recent years. It’s opposed by Sabadell’s board.
Last month, the European Commission warned the Spanish government that it does not have the authority to block BBVA’s bid. Prime Minister Pedro Sánchez’s cabinet has until June 27 to decide whether to impose any additional conditions on the deal. Sabadell’s board is bound by a “duty of passivity” due to the takeover bid. Any sale of TSB would require shareholder approval.
If BBVA succeeds in its takeover of Sabadell, it is widely expected that they will look to offload TSB.
