TSB Agree to Sabadell Takeover
2 minute read
Spain’s fifth largest banking group, Sabadell have agreed their takeover of local lender, TSB, with a fee agreed at £1.7billion between the two parties. Lloyds Banking Group, who previously spun off the TSB brand have also agreed to sell a 10% stake in TSB to Sabadell, as well as being offered an undertaking to offload its remaining 40% holding. Having now agreed the takeover, Sabadell will be looking to target further deals to boost TSB’s challenge against the established ‘big four’ of the banking world, those being HSBC, Barclays, Lloyds and Royal Bank of Scotland. As Just previously reported, the takeover has led to TSB shares soaring, with a 25% increase in the current value of shares now rising to 31%. TSB Chief Executive, Paul Pester will continue to run the business, and said that the offer was a “a real vote of confidence” in the bank and its employees. Pester added, “It will expand our services to business customers and continue to bring more competition to UK banking.”
Will it Affect Existing Customers?
With shares performing well, many involved in the TSB brand have plenty to be pleased about, but existing customers are likely to sit up and take note of the takeover. A statement on TSB’s website reads, “there’s no need for you to do anything differently. We will continue to focus on giving you the service you want from your bank – whether that’s on the high street, through simple online and mobile banking, or via our UK-based telephone banking team.” Time will no doubt tell if the takeover has a notable impact on TSB customers. To discuss your mortgage needs. Speak to Just Mortgage Brokers today.