Banc Sabadell acquires 100% of TSB shares

Barcelona (CNA).- The Catalan bank Sabadell has completed the process of compulsory acquisition of all TSB Banking Group (TSB) shares, and now owns 100% of the shares of this British entity. The move completes the takeover started last spring, when TSB accepted the 1.7bn-pound offer made by Banc Sabadell. Through buying TSB, Banc Sabadell has expanded its international presence, with its percentage of foreign assets growing from 5% to 22%. TSB has 631 branches, 4.6 million customers and 8,600 employees in the United Kingdom.   

In March, Banc Sabadell reached an agreement with the British entity for a £1.7bn takeover and shareholders where offered 340 pence per share. On the 30^th of June, the United Kingdom’s Prudential Regulatory Authority (PRA) authorised the deal and Sabadell announced that its offer for the TSB Banking Group had become unconditional. Having received valid acceptances for in excess of 90% of TSB shares, the Catalan bank initiated the procedure to compulsorily acquire those they did not already own, a process that has been completed this Tuesday. 

TSB, the seventh-largest bank in the UK, has €39.712 million in assets, €30.542 million in credits and €35.025 million in deposits, which represent 19% of assets, 27% of credits and 20% of deposits of the Sabadell Group. At the end of the second quarter of 2015, the total assets of Banc Sabadell amounted to €164,246.9 million, which represents a1.7% increase on a year previous. When TSB is included, assets increased and exceeded €200bn for the first time.

In order to start the integration of TSB and Banc Sabadell activities, the development of a new technology platform is now underway. It will be ready by the end of 2016 so that the bank can be fully operationally integrated in the fourth quarter of 2017.