Spanish lender Sabadell has confirmed it has received early interest from potential buyers for its UK subsidiary, TSB, and said it will consider any formal bids that may be submitted.
The move comes as Sabadell seeks to strengthen its position amid an €11bn (£9.4bn) hostile takeover attempt by rival Spanish bank BBVA.
The Catalonia-based group said it had received “preliminary, non-binding expressions of interest” from unnamed parties regarding TSB and will evaluate any firm offers that follow.
Barclays, NatWest, HSBC, and Santander UK are among the names believed to be interested in acquiring the bank.
TSB currently operates 175 branches across the UK, serving over 5 million customers and employing around 5,000 people.
Sabadell acquired the bank — formerly part of Lloyds Banking Group — for £1.7bn approximately ten years ago.
TSB sale comes amid potential 'hostile takeover'
Sabadell rejected a previous €12.2bn takeover bid from BBVA in May 2024, however BBVA’s shareholders later approved the integration in July and BBVA plans to take the offer directly to Sabadell shareholders. BBVA also received the green light from authorities of several countries where Banco Sabadell has a presence, including the United States, France, Portugal and Morocco.
In response, Sabadell wrote to its shareholders about the "hostile public takeover bid that BBVA has put in", stating that it was "submitted without prior agreement with [its] board of directors”.
BBVA secured approval from the UK's Prudential Regulation Authority to take indirect control of TSB as a subsidiary of Sabadell. Authorisation from the PRA was a necessary step to complete the takeover, since TSB would become part of BBVA.
The potential sale is thought to be seen as an assertive response to BBVA's takeover approach. Market experts expect TSB to be offloaded regardless of the takeover outcome, with BBVA expected to sell TSB as part of a post-merger restructure if its takeover attempt succeeds.
