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Spanish bank Sabadell sells TSB to Banco Santander for 3.3 billion euros
Finance

Spanish bank Sabadell sells TSB to Banco Santander for 3.3 billion euros

Published by Global Banking & Finance Review

Posted on May 1, 2026

1 min read

· Last updated: May 1, 2026

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Banco Sabadell Sells UK Subsidiary TSB to Santander for €3.3 Billion

Details of the TSB Sale and Its Impact

Overview of the Transaction

MADRID, May 1 (Reuters) - Spain's Banco Sabadell has completed the sale of its UK subsiduary TSB to Banco Santander for 3.3 billion euros ($3.87 billion), Sabadell said on Friday.

Financial Implications for Banco Sabadell

The transaction will allow Sabadell to realise a capital gain of 300 million euros and distribute a special dividend of 0.50 euros to its shareholders on May 29.

Currency Exchange Rate

($1 = 0.8524 euros)

Reporting Credits

(Reporting by Graham KeeleyEditing by David Goodman)

Key Takeaways

  • The deal, closed with full regulatory approval, comprises a base price of £2.65 billion plus an additional £213 million in value generated pre-closing, totaling ~€3.3 billion. This produces over 400 basis points of capital gain for Sabadell. (marketscreener.com)
  • Sabadell will distribute an extraordinary cash dividend of €0.50 per share on May 29, 2026, as approved in August 2025. (marketscreener.com)
  • The divestiture allows Sabadell to refocus on its core Spanish market, having acquired TSB in 2015 for £1.7 billion and receiving over €600 million in dividends from it; the bank will not compete in the UK for 24 months post-sale. (marketscreener.com)

References

Frequently Asked Questions

Who bought TSB from Banco Sabadell?
Banco Santander acquired TSB from Banco Sabadell.
How much did Banco Santander pay for TSB?
Banco Santander paid 3.3 billion euros for TSB.
What is the financial impact of the TSB sale for Sabadell?
Sabadell will realize a capital gain of 300 million euros from the sale.
Will Sabadell distribute a dividend after selling TSB?
Yes, Sabadell announced a special dividend of 0.50 euros per share to shareholders.
When will the special dividend be distributed to Sabadell shareholders?
The special dividend will be distributed on May 29.

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