Spanish banking entity Sabadell is reportedly assessing the sale of its UK-based unit TSB, reported Financial Times, citing sources.   

This consideration emerges as the bank contends with an €11bn unsolicited takeover bid from domestic competitor BBVA.  

Sabadell has engaged advisers to facilitate the assessment process and has initiated dialogue with potential acquirers, FT added.  

Documents pertinent to the potential sale have been distributed to interested parties in recent weeks, and a select group has been granted access to conduct preliminary due diligence, including entry to a data room.  

The initiation of the sale process was reportedly prompted by unsolicited interest in TSB from several parties, with expectations for submission of bids set for this month. 

Potential acquirers of TSB may include established banking institutions such as Barclays, NatWest, Santander UK, and HSBC.  

Sabadell acquired TSB in 2015 from Lloyds Banking Group. 

TSB has reported robust financial results, with pre-tax profits of £285mn and total assets of £46.1bn at the end of 2024, serving a customer base of around 5 million in the UK. 

The valuation Sabadell anticipates for TSB has not been made public, but sources suggest a sale could realise between £1.7bn and £2bn.  

The bank’s total equity was recorded at £2.1bn at the conclusion of the last year.  

The Spanish government has subjected BBVA’s takeover bid to an extensive review by cabinet ministers.  

Sabadell’s board has consistently opposed BBVA’s overtures, which have also faced resistance from Catalonia’s business community, where Sabadell has historical roots.  

The European Commission has recently cautioned the Spanish government against overreaching its authority in attempting to obstruct BBVA’s bid.  

The Spanish cabinet has been given a deadline of June 27 to determine whether to impose additional conditions or restrictions on the deal, beyond antitrust considerations. 

Sabadell has declined to comment on the matter.  

Following the press reports, Sabadell confirmed that it has received “preliminary non-binding expressions of interest” for the acquisition of TSB’s entire share capital in a regulatory filing.  

The bank has stated that it will “assess any potential binding offer” that it may receive in due course.