TSB considering €2.4 billion Spanish takeover

TSB banking group, which is one of the largest lenders in the UK, has officially stated that it is considering the offer from Spain´s Banco Sabadell in a statement given yesterday (Thursday March 12).  

TSB, which found itself in difficulties during the British financial crisis was, until recently controlled entirely controlled by the Lloyds Banking group.

Lloyds – which itself had to accept a bail-out package from the UK government, sold 50 per cent of TSB on the stock market less than a year ago. The rest of the stock must be re-floated on the stock market by the end of 2015. The bid, which has been seen as a largely positive offer by British business gained more than 25 per cent value on the stock market in the day following the announcement.

Sabadell, which is one of Spain’s  five  largest banking groups, is looking to expand its operations overseas and in business circles a deal is considered to be likely. In contrast to TSB’s rise in value Sabadell’s offer caused the Iberian companies value to initially drop more than 8 per cent.

TSB is a major employer in the UK, with more than 8000 staff and, at least initially, Sabadell is planning to continue running TSB as a high street banking operation.