Let's Twist Again: Santander Expands in the UK Through TSB Acquisition

On 1 July 2025, Banco Santander SA (Santander or the Group) announced an agreement to acquire 100% of TSB Bank plc (TSB) from Banco de Sabadell, S.A. (Sabadell). The all-cash transaction is valued at GBP 2.65 billion, or around EUR 3.1 billion, and follows the recent partial sale of Santander's Polish subsidiary to Erste Group Bank AG (Erste).

Key highlights:
-- TSB, the UK predominantly retail banking subsidiary of Sabadell, could be the next in a nationwide move towards more consolidation across the banking sector.
-- The acquisition is major for Santander, as it significantly bolsters its already established footprint in the UK and will make it the fourth-largest bank by total assets in the country.
-- This shift should allow Santander to gain sufficient scale to ward off recent challenges in the country, notably subpar profitability, which made the group consider a potential exit from the UK earlier this year.

"We view this as a major acquisition for Santander, as it significantly bolsters its already-established footprint in the UK and will make the Group the fourth-largest bank by total assets in the country, " said Arnaud Journois, Senior Vice President, European Financial Institution Ratings. "We believe this will allow Santander to gain sufficient scale to ward off recent challenges in its UK business, notably subpar profitability, which made the Group consider earlier this year a potential exit from the UK."