TSB in Takeover Talks with Spanish Bank
2 minute read
British local banking champion, TSB has begun talks with Spanish bank Sabadell over a potential takeover. Sabadell have currently tabled an offer of £1.7billion to takeover the bank, which split from Lloyds last summer. The TSB name has been built upon promoting its local credentials and its support for small businesses and is still partly owned by the Lloyds Banking Group, so many will be interested to see the changes that will be brought about by an international buyout. Kevin Mountford, head of banking at MoneySuperMarket said, ‘Banco Sabadell’s takeover bid is recognition of the rapid growth success of TSB since the brand was re-launched in the UK. It is also a sign that the UK banking market is proving an attractive proposition for investors, especially in comparison to the rest of Europe.’ He added, ‘While it is early days, any takeover is unlikely to impact customers – at least in the short-term. It is likely TSB will remain a UK based entity and continue to be covered by the Financial Services Compensation Scheme.’
TSB Shares Soar
TSB’s shareholders are said to be delighted with the result of the talks, seeing a 25% increase in the current value of their shares. TSB has proved popular on the stock market in the past, when 60,000 private investors took part in TSB’s stock market flotation last year, the offer was more than 10 times oversubscribed. If talks are successful, shareholders will be looking towards how Sabadell can continue to support and accelerate the growth of TSB in the coming years. To discuss your mortgage needs. Speak to Just Mortgage Brokers today.