Sabadell sells TSB to Santander for £2.65 billion amid takeover bid concerns

In Spain, shareholders of Sabadell voted to approve a cash sale of TSB to Santander worth £2.65 billion. This decision was disclosed at an extraordinary general meeting held on a Wednesday, marking a significant move for the Spanish banking group. Analysts suggest that this sale may help Sabadell fend off a potential hostile takeover proposal from rival BBVA which has caused much debate since last year. The decision to sell TSB aligns with Sabadell's focus on growth potential in Spain, allowing them to sharpen their operations in the domestic market. The transaction received a notable 99.6% approval from shareholders, highlighting strong support for the board’s strategic priorities. Sabadell's chairman, Josep Oliu, clarified that the decision to sell was independent of BBVA’s bid, emphasizing that TSB's sale was beneficial for the bank and its stakeholders. Since 2021, Sabadell noted an interest in TSB from other potential buyers, which demonstrates the bank's recovery after earlier challenges. Prior to the shareholder decision, there had been attempts from BBVA to acquire Sabadell, valued at around €12 billion. Opposition from Sabadell’s board has persisted since this bid was introduced, indicating their confidence in maintaining independent operations. Pablo de la Torre Cuevas, an analyst at RBC Capital Markets, opined that the board's decision to proceed with the sale appears to be a crucial move to encourage shareholders to reject BBVA's ongoing offer during the upcoming acceptance period. The sale is anticipated to be finalized within the first quarter of 2026, a timeline that will be closely monitored by industry stakeholders as it could alter the competitive landscape in British banking.