Santander UK closes £2.65bn purchase of TSB from Sabadell

Santander UK has completed its £2.65bn ($3.6bn) cash purchase of TSB from Banco Sabadell after regulator clearance, a deal intended to lift Santander UK’s return on tangible equity toward 16% by 2028 and deliver at least £400m of cost synergies. The transaction makes Santander UK the third-largest bank by current account balances and fourth in mortgages, serving about 28 million customers combined. Banco Sabadell will realise a capital gain of just over €300m and face a 24-month non-compete in the UK, while retaining a UK branch for corporate clients. The deal is positive for Santander UK and the broader UK banking sector, implying potential upward pressure on sector confidence and on related UK market indices.