BBVA Secures U.K. Approval for TSB Takeover, Moving Closer to Banco Sabadell Acquisition

BBVA Secures U.K. Approval for TSB Takeover, Moving Closer to Banco Sabadell Acquisition

(IN BRIEF) BBVA has received approval from the U.K.’s Prudential Regulation Authority (PRA) to take indirect control of TSB Bank, a subsidiary of Banco Sabadell. This approval is a key step in BBVA’s plan to acquire Banco Sabadell, which will strengthen BBVA’s presence in the U.K. market. The acquisition still requires additional approvals from the European Central Bank, the Spanish Securities Market Commission, and Spain’s competition authority. The offer is contingent on the acceptance of at least 50.01% of Banco Sabadell’s shareholders.

(PRESS RELEASE) BILBAO, 3-Sep-2024 — /EuropaWire/ — In a significant development in the European banking sector, BBVA has received approval from the U.K.’s Prudential Regulation Authority (PRA) to assume indirect control of TSB Bank plc, a subsidiary of Banco Sabadell. This approval is a critical step in BBVA’s broader strategy to acquire Banco Sabadell, a move that will significantly enhance its presence in the United Kingdom.

BBVA, one of Spain’s largest financial institutions, made a formal offer to purchase shares from Banco Sabadell’s shareholders on May 9, 2024. The acquisition is contingent on receiving various regulatory approvals, with the green light from the PRA being a crucial milestone. This approval follows similar endorsements from regulatory authorities in several other countries where Banco Sabadell operates, including the United States, France, Portugal, and Morocco.

TSB, a well-established British bank under Banco Sabadell’s ownership, will now potentially become part of BBVA, pending further approvals. The acquisition is expected to strengthen BBVA’s footprint in the U.K. market, leveraging TSB’s local expertise and customer base to expand its operations.

Before the offer can proceed, BBVA still requires approvals from the European Central Bank (ECB) and the Spanish Securities Market Commission (CNMV). Additionally, the success of the offer hinges on the acceptance of at least 50.01% of Banco Sabadell’s shareholders and the approval from Spain’s competition authority, CNMC.

Industry analysts view this acquisition as a strategic move for BBVA, enhancing its competitiveness in the European market while providing a stronger platform for growth in the U.K. The deal is anticipated to bring significant synergies between BBVA’s global banking capabilities and TSB’s established presence in the British market.

The next steps in this transaction will be closely watched by the financial community as BBVA continues to navigate the regulatory landscape to finalize its acquisition of Banco Sabadell and its subsidiary, TSB Bank.

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SOURCE: BBVA