Santander UK has completed its near £3 billion takeover of smaller rival TSB, marking what it describes as the single biggest investment in Britain's banking sector for more than 15 years.
The Spanish-owned lender confirmed the deal went through on Thursday after recently securing regulatory approval from authorities in the UK and Europe. The combined group will become the UK's third biggest bank for current accounts and fourth for mortgages, serving nearly 28 million customers nationwide.
Santander, which is owned by Banco Santander, assured customers of both banks that there would be no immediate changes to their accounts or cards, and they can continue using them as before.
Mahesh Aditya, Santander UK's new chief executive, said: “This is excellent news for UK banking, with the acquisition representing the single largest investment in the sector for over 15 years. Bringing TSB into the Santander group strengthens competitiveness in the market and is an important step in creating the best bank for customers.”
Santander agreed a £2.65 billion buyout of TSB from Spanish banking group Sabadell last year, but the final price rose to £2.9 billion upon completion. Nicola Bannister, who became chief executive of TSB on Friday, said: “Today marks a significant new chapter for TSB as we become part of Santander. I look forward to leading TSB as we combine the very best of these two great businesses.”
Santander is targeting at least £400 million in cost savings from the acquisition.
