Santander has reached an agreement to acquire 100% of TSB Banking Group plc from Banco de Sabadell, S.A. or Sabadell, with a valuation of 2.65 billion pounds. TSB is a UK retail bank with a nationwide network of 218 branches and outlets. It serves approximately 5 million customers, primarily in the personal and small business segments.
Santander noted that, when combined, the two banks would serve nearly 28 million retail and business customers nationwide. At Santander group level, the transaction would be accretive to earnings per share from the first year and of approximately 4% by 2028. The transaction will not affect Santander's distribution policy and 2025 targets. Completion of the transaction is expected to occur in the first quarter of 2026.
Ana Botín, Banco Santander's executive chair, said: "The transaction will accelerate our path to greater profitability in the UK and helps achieve a return on tangible equity of 16% by 2028."
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