Banking giants Santander contemplates merging with TSB's parent company, considering a potential consolidation on the high street.
Santander's got its sights set on a potential takeover of TSB, its British high street bank, from fellow Spanish banking group Sabadell. Apparent indications point to Ana Botin, Santander's chair, reviving her ambition for a larger UK presence within the high street banking scene.
Insider sources suggest that Santander has expressed interest in a possible deal, although it hasn't tabled a formal offer as of now. It's not certain if they'll follow through, but the mere contact with Sabadell about a potential TSB transaction hints at Botin's determination.
The degree of overlap between the two banks' UK branch networks remains unclear. While Santander re examines its branch closure program and now has approximately 350 UK branches, TSB operates closer to half that number.
TSB's value in a takeover and the identity of potential buyers are also undetermined. Sabadell has been trying to thwart a hostile takeover bid from rival Spanish bank BBVA since last year, with a disposal of TSB on the table regardless of the bid's success[2][3][5].
The possible buyer pool includes ministries like NatWest Group, who denies being in discussions about a £11bn deal[5]. Barclays and HSBC have been floated as possible suitors, though it's uncertain if either bank has to made formal moves yet[4][5]. TSB, initially created in the fallout from the 2008 financial crisis[5], was put up for sale in 2015 to Lloyds Banking Group before ending up with Sabadell[2].
It's a fluid situation as Sabadell assesses potential offers and years of speculation could lead to bank consolidation within the UK[1][5]. Goldman Sachs is said to be advising Sabadell on the prospective sale of TSB[4][5].
The potential takeover of TSB by Santander could impact the UK banking industry, as Santander's interest in a deal suggests they are reconsidering their UK presence expansion. If successful, the acquisition could also have implications for finance and business sectors, as Sanctions against certain countries could potentially affect their financing options. The ongoing war of takeovers between Sabadell and BBVA, and the possibility of TSB being disposed of, further adds uncertainty to the situation.
