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TSB agrees £1.7bn takeover by Spain’s Sabadell

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TSB agrees £1.7bn takeover by Spain's SabadellTSB – the bank formerly owned by Lloyds – has agreed to a £1.7bn takeover by Spanish bank Sabadell.

The takeover of the UK bank comes less than a year after it rejoined the stock market when Lloyds Banking Group sold off 50% of the business.

Sabadell’s offer of 340p a share is 4% above Thursday’s closing share price for TSB.

It is also 29% above the level at which investors valued the TSB business on 11 March, before Sabadell stepped in.

TSB said that Sabadell could support and accelerate its “retail growth strategy”.

TSB said that if a takeover went ahead, Sabadell would continue to “operate TSB as a robust competitor in the UK banking market, building on the TSB brand name”.

TSB has 8,600 staff and 631 branches. Sabadell was founded in Barcelona in 1881 and now has 2,320 branches.

Sabadell, Spain’s fifth-biggest bank, plans to diversify by expanding overseas, to offset sluggish growth in its home market.

Lloyds had been ordered to sell the bank by European regulators as a condition of its government bailout during the UK financial crisis of 2007 to 2009.

It has until the end of 2015 to sell the rest of its TSB stake.

The UK bank sold its Spanish retail banking business to Sabadell in 2013 in exchange for a 1.8% stake in Sabadell.

http://www.bbc.com/news/business-31980833

The post TSB agrees £1.7bn takeover by Spain’s Sabadell appeared first on NEWSEUROPE.


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