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TSB in takeover talks with Sabadell

Kit Klarenberg
Written By:
Kit Klarenberg
Posted:
Updated:
12/03/2015

Spanish bank Sabadell has announced a £1.7bn bid to absorb TSB, the challenger bank spun out of Lloyds and floated on the stock market last summer.

As reported last month by Your Money, TSB gained 8.4 per cent of all new customers last year. The bid, while provisional, has been confirmed to be for 340p a share in cash; TSB shares surged by 27 per cent in the wake of the development.

No formal bid has been made yet but TSB said a proposal for 340p a share in cash for the British bank had been put forward.

TSB was separated from former partner Lloyds and floated on the stock market as a separate entity last summer, although Lloyds still owns 50 per cent of the bank.

“Based on preliminary discussions, 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,” a spokesperson for TSB said.

“Sabadell would continue to operate TSB as a robust competitor in the UK banking market, building on the TSB brand name. Sabadell believes that the current banking industry dynamics and macro-economic environment make the UK an attractive market for future investment.

 

 


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