Spanish banking group Sabadell announced on Friday the completion of its sale of British bank TSB to larger rival Santander. The transaction, first announced in July, is valued at a total of around 3.3 billion euros, equivalent to approximately $3.87 billion. Sabadell, recognised as Spain’s fourth-largest listed bank by market value, concludes a significant divestment with this deal.
The total amount paid by Santander encompasses a 2.65 billion pound purchase price, which translates to around 3.05 billion euros, alongside an additional 213 million pounds, or some 240 million euros, representing value generated by TSB in the months leading up to the deal’s close. Following regulatory approvals, Sabadell expects to book a capital gain of around 300 million euros from the completion of the sale. This strategic move is also projected to generate more than 400 basis points of capital for the Spanish lender.
As a direct benefit to its shareholders, Sabadell confirmed it would distribute a special dividend of 0.50 euro per share. This payout is scheduled for May 29, as stated in a recent bank announcement. For the acquirer, Santander, which is the euro zone’s biggest bank by stock market value, the acquisition is set to significantly bolster its presence in the United Kingdom. Santander previously indicated in July that the transaction would establish it as the third-largest bank in Britain based on personal current account balances.
