Santander UK (LSE:SANB) has completed the acquisition of TSB for £2.65 billion cash, plus an estimated TNAV Variation of approximately £213 million.
The transaction was financed from Santander UK's existing cash resources and funding provided by its ultimate parent, Banco Santander SA.
Santander UK said the deal makes it the third largest bank in the UK by personal current account balances and fourth in mortgages, and is expected to deliver at least £400 million of cost synergies and to lift return on tangible equity to 16% by 2028 while leaving pro forma CET1 at 14%.
It intends to integrate TSB in the first half of 2027, subject to court sanction and regulatory non-objection.
