Santander has reached an agreement to acquire TSB for £2.65 billion, raising concerns about the potential disappearance of TSB branches from the high street. This acquisition will consolidate the two banks, creating a combined entity with nearly 28 million customers, positioning it as the third-largest UK bank in terms of personal current account deposits after Lloyds and NatWest.
TSB, previously owned by Lloyds Banking Group until a demerger in 2013, was later acquired by Sabadell for £1.7 billion in 2015. Following Sabadell’s consideration of selling its UK business, Barclays also expressed interest in acquiring TSB.
Santander has expressed its intention to integrate TSB within its group, which could potentially lead to the disappearance of the TSB brand from the high street, with customers transitioning to Santander. However, specific details regarding the future branding of TSB are yet to be disclosed, thus it remains business as usual for both TSB and Santander customers.
While Santander has hinted at future branch closures and a restructuring of the branch network, these changes will not be immediate. Shareholder approval is required for the deal, which is expected to be finalized by the first quarter of 2026. TSB currently operates about 175 physical high street banks across the UK, compared to Santander’s 349 branches.
Douglas Grant, Group CEO of Manx Financial Group, commented on the potential impacts of the acquisition, emphasizing the likelihood of significant branch closures, which regulatory authorities will closely scrutinize.
In response to the acquisition, Marc Armengol, TSB chief executive, expressed optimism about the future collaboration with Santander, highlighting the potential benefits for loyal customers. Mike Regnier, CEO of Santander UK, echoed the sentiment, emphasizing the strategic advantages of combining the two banks and committing to enhancing customer service and digital offerings. Santander aims to leverage its technology and experience to ensure a seamless integration and provide continued support to customers and employees throughout the transition process.