Santander’s UK footprint is set to significantly expand, potentially doubling its branch network and customer base through the £2.65 billion acquisition of TSB. The integration of TSB’s 175 branches and 5 million customers with Santander’s existing 350 branches and 14 million customers will create a formidable presence.
The impetus behind this major acquisition lies in a complex corporate power play in Spain, where TSB’s current owner, Sabadell, is battling an €11 billion (£9.4 billion) hostile takeover bid from BBVA. Sabadell’s decision to offload TSB is a defensive measure to strengthen its financial position.
Subject to approval from Sabadell’s shareholders, the deal could see TSB change hands in early 2026, marking its third major ownership change in just over 12 years. This includes its spin-off from Lloyds and its subsequent acquisition by Sabadell, underscoring a period of considerable flux for the bank.
While this expansion signals growth for Santander, it intensifies the concerns for TSB staff and customers, particularly regarding branch rationalization and job security. The strategic benefits for Santander are clear, but the impact on TSB’s existing operations is yet to be fully determined.