Santander approaches TSB-owner about high street banking merger

Santander has approached its chap Spanish banking radical Sabadell astir a takeover of TSB, its British precocious thoroughfare bank.

Sky News has learnt that Santander is among the parties which person expressed an involvement successful a imaginable deal, months aft its brag denied that it was seeking to offload the UK's fifth-largest retail bank.

City sources said connected Wednesday that Santander had not tabled a ceremonial connection for TSB, and was not definite to bash so.

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However, the information that it has contacted Sabadell astir a imaginable transaction involving TSB suggests that Ana Botin, the Santander chair, whitethorn beryllium unfastened again to expanding its beingness successful Britain's precocious thoroughfare banking market.

The grade of the overlap betwixt the 2 companies' UK subdivision networks was unclear connected Wednesday morning.

Santander, which similar different banks has been engaged successful an extended subdivision closure programme for immoderate time, present has astir 350 UK branches, portion TSB operates astir fractional that number.

The worth that TSB, which was acquired by Sabadell successful 2015 from Lloyds Banking Group, mightiness pull successful immoderate takeover is besides unclear.

Sabadell is successful the mediate of attempting to thwart a hostile takeover by rival Spanish slope BBVA - a woody revealed by Sky News past twelvemonth - with a disposal of TSB said to beryllium connected the cards careless of whether oregon not that bid is successful.

Ms Botin insisted that the UK remains a halfway marketplace for Santander successful the aftermath of speculation that she mightiness authorisation a merchantability of the business.

The institution precocious confirmed a Sky News study that Sir Tom Scholar, the erstwhile apical Treasury authoritative sacked by Liz Truss during her little premiership, was joining the bank's UK limb arsenic its adjacent chairman.

NatWest Group, which precocious returned to afloat backstage ownership, was reported to person submitted an connection worthy astir £11bn for Santander UK.

No discussions are ongoing astir specified a deal.

NatWest, Barclays and HSBC person besides been touted arsenic imaginable suitors for TSB, though astatine slightest 2 of those 3 banks are thought to person small involvement successful bidding.

TSB was efficaciously created from the ashes of the 2008 fiscal crisis, erstwhile a conveyance acceptable up to get assets from distressed banking groups mislaid retired successful an auction to a bid from the Co-operative Bank.

That woody fell done erstwhile it emerged that the Co-operative Bank itself was successful a perilous fiscal state.

Sabadell explored a merchantability of TSB astir 5 years ago, but opted to clasp the business.

Goldman Sachs is thought to beryllium advising Sabadell connected the prospective merchantability of TSB.

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Responding to a study successful the Financial Times connected Sunday that TSB had been enactment up for sale, Banco Sabadell said: "Banco Sabadell confirms that it has received preliminary non-binding expressions of involvement for the acquisition of the full stock superior of TSB Banking Group plc.

"Banco Sabadell volition measure immoderate imaginable binding connection it whitethorn receive."

Santander declined to comment.

The TSB process emerged conscionable hours aft Sky News had revealed that Metro Bank, the precocious thoroughfare lender, had been approached by Pollen Street Capital, the backstage equity firm, astir a imaginable takeover.

The lack of a connection from either enactment implies that the attack was rejected and that Pollen Street has abandoned its interest, astatine slightest temporarily.