Banco de Sabadell Approves Sale of TSB to Santander

Sabadell shareholders approve the sale of its British unit TSB to Santander. The deal is valued at £1.7 billion. This move is part of Santander's plan to expand its presence in the UK. The transaction is subject to regulatory approval and is expected to be completed in the coming months.

July 2, 2025 — Sabadell shareholders have approved the sale of its British unit, TSB, to Banco Santander. The deal, valued at £1.7 billion, is a strategic move by Santander to expand its presence in the UK market. The transaction is subject to regulatory approval and is expected to be completed in the coming months [2].

Santander's acquisition of TSB will further strengthen its foothold in the UK, complementing its existing operations. The deal is part of Santander's broader strategy to enhance its profitability and capital efficiency, as highlighted in its Q2 2025 earnings report [2]. The bank reported a record €3.4 billion profit and a 16% post-tax Return on Tangible Equity (RoTE), demonstrating its ability to navigate macroeconomic headwinds while accelerating value creation for shareholders.

The approval of the TSB sale by Sabadell shareholders is a significant milestone in Santander's expansion plans. The acquisition aligns with Santander's focus on digital transformation and strategic mergers and acquisitions (M&A). By acquiring TSB, Santander aims to capture market share in the competitive UK banking environment and leverage TSB's customer base to drive growth in its wealth management and payments segments.

The deal is expected to bring synergies, including potential net interest income (NII) gains, which will contribute to Santander's overall profitability. The bank's disciplined approach to capital allocation, as seen in its €10 billion shareholder return plan, ensures that the acquisition will not detract from its commitment to shareholder value [2].

For BBVA, which had proposed a hostile takeover of Sabadell, the approval of the TSB sale does not impact its standalone financial outlook. BBVA CEO Onur Genc emphasized that the bank's strategy is robust and can achieve its targets without the Sabadell merger. BBVA aims to accumulate a net attributable profit of around €48 billion over the 2025-2028 period and distribute €36 billion in capital to shareholders through 2028 [1].

The approval of the TSB sale by Sabadell shareholders is a positive development for Santander, as it moves forward with its strategic expansion plans. The deal is expected to be completed in the coming months, subject to regulatory approval. Santander's disciplined approach to capital management and strategic M&A will continue to drive its profitability and value creation for shareholders.

References:
[1] Reuters. (2025, July 31). Spain's BBVA aims higher profits even without Sabadell deal. Retrieved from https://www.reuters.com/business/finance/spains-bbva-aims-higher-profits-even-without-sabadell-deal-2025-07-31/
[2] AInvest. (2025, July 25). Banco Santander's Q2 2025 earnings report delivers masterclass in capital efficiency. Retrieved from https://www.ainvest.com/news/banco-santander-2025-q2-earnings-catalyst-shareholder-strategic-growth-2507/