Sabadell approved to takeover TSB
(2 July 2015 – Spain) Britain’s financial regulators have approved Spain’s Banco Sabadell’s £1.7 billion (A$3.5 billion) takeover of Britain’s TSB.
Sabadell is Spain’s fifth-largest bank and after agreeing to buy TSB earlier in 2015, said it plans to grow it to become significant competition against Britain’s big five lenders.
Together Lloyds Banking Group, Royal Bank of Scotland, Barclays, HSBC and the United Kingdom arm of Santander, control more than four out of five personal current accounts in Britain.
Sabadell said on 30 June the Prudential Regulation Authority and Financial Conduct Authority had approved the deal.
"This is a milestone that enables us to enter a market with vast opportunities," said Sabadell Chairman Josep Oliu.
Sabadell has said it may consider more acquisitions in Britain following the purchase of TSB, which is Britain's seventh-biggest bank.
"With the extra firepower and fresh perspective of Sabadell, TSB will be stronger and even better placed to build on its position as Britain's challenger bank," TSB chief executive Paul Pester said on 30 June.
TSB, which already has 4.7 million customers, was spun out of Lloyds last year after Lloyds was ordered to sell the business by European regulators as a condition of its £20.5 billion bailout during the 2007 to 2009 financial crisis.