BBVA Approved to Acquire TSB

Prudential Regulation Authority Gives Green Light for Deal

Transaction Expected to Close in Early 2024

Madrid, Spain-based BBVA has received approval from the Prudential Regulation Authority (PRA) to acquire an indirect controlling stake in Banco Sabadell's British banking subsidiary, TSB.

The deal, which was first announced in November 2022, will see BBVA acquire a 50.1% stake in TSB for approximately £1.7 billion ($2.1 billion).

The PRA's approval is a significant step towards the completion of the transaction, which is expected to close in early 2024, subject to customary closing conditions.

BBVA chairman Carlos Torres Vila said, "We are very pleased to have received the PRA's approval for our acquisition of TSB." He added, "This transaction will allow us to expand our presence in the UK, one of our key markets, and to offer a wider range of products and services to our customers."

TSB CEO Robin Bulloch said, "We are very excited about the opportunities that this transaction will create for TSB." He added, "BBVA is a world-class banking group with a strong track record of success, and we believe that their expertise and resources will help us to accelerate our growth."

The acquisition of TSB will give BBVA a significant presence in the UK banking market, with a combined customer base of over 10 million customers and a loan book of over £160 billion ($200 billion).

The deal is also expected to generate significant cost savings for both BBVA and TSB, with the two banks expected to achieve synergies of around £200 million ($250 million) per year by 2025.

According to research by Bloomberg Intelligence, the combined BBVA-TSB entity would become the sixth-largest bank in the UK by market share, with a share of around 6%.

The transaction is still subject to approval from the European Central Bank (ECB) and the Spanish National Securities Market Commission (CNMV), but these approvals are expected to be obtained in due course.

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