NatWest says 'we're out'
Barclays and Santander are reportedly exploring possible bids for TSB, the UK banking unit owned by Spain’s Banco Sabadell.
The two banks are understood to be at the preliminary stage of evaluating individual offers, according to Bloomberg, which cited sources familiar with the matter.
Interest in TSB follows Sabadell’s recent confirmation that it had received unsolicited approaches for the British bank, which it acquired for approximately £1.7 billion in 2015. A potential sale may aid Sabadell in its efforts to resist a hostile takeover bid from Spanish banking rival BBVA.
Barclays has been streamlining its UK operations, adding businesses such as Kensington Mortgages and Tesco Bank in recent years to enhance its domestic reach. Santander, meanwhile, has exited some international markets, including a recent deal to offload its Polish unit, though its leadership has signalled openness to deals that align with its growth strategy.
Analysts estimate TSB could fetch around £2.6 billion.
Conversations are ongoing, Bloomberg reported, and there is no guarantee they will result in a transaction. Barclays, Santander and Sabadell declined to comment.
Banco Sabadell’s British unit TSB is attracting initial interest from potential buyers including Barclays and Banco Santander https://t.co/GzzLYMm4h1
— Bloomberg (@business) June 18, 2025
NatWest Group had previously been seen as the front-runner to acquire TSB due to its potential to expand the bank’s mortgage operations. However, it has ruled out pursuing a deal.
Mergers and acquisitions activity among UK and European banks has picked up as firms look to strengthen their market positions and return value to shareholders. In some cases, banks facing unwanted bids have opted to sell assets to deter takeovers.
Sabadell’s TSB acquisition has faced challenges in the past, including major IT disruptions and regulatory scrutiny. However, recent improvements in profitability — helped by rising interest rates and tighter cost controls — have made the lender more attractive to prospective buyers.
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