Sabadell’s Big Move: Will TSB Be Sold to Block BBVA’s Takeover?

Sabadell Might Ditch TSB—Here’s Why It’s a Big Deal

So here’s the thing—Banco Sabadell, that Spanish bank you’ve probably never heard of unless you’re into finance, is seriously thinking about selling off TSB. You know, that UK bank with the whole IT disaster a few years back? Yeah, that one. And get this—it’s all because BBVA (another Spanish giant) is trying to swallow Sabadell whole. Messy? Absolutely. Let me break it down for you.

BBVA vs. Sabadell: Banking’s Latest Soap Opera

Late last year, BBVA threw €12 billion on the table for Sabadell. Sabadell’s response? Basically, “Nice try, but no.” Their board called the offer “a joke” (okay, they said “significantly undervalued,” but you get the vibe). Here’s the kicker—Spain’s banking scene has been begging for mergers, but ego and numbers keep getting in the way. Classic.

Now Sabadell’s playing defense. Selling TSB? That’s like removing the shiny toy BBVA wanted most. Smart move—or desperate one? Depends who you ask. But here’s the real talk: TSB hasn’t exactly been a golden goose.

TSB’s Rocky Ride: From Bad to… Meh

Sabadell bought TSB back in 2015 for £1.7 billion. Big dreams, right? Then 2018 happened. The IT system crashed harder than a kid learning to ride a bike. Millions in refunds, customers raging on Twitter—you know the drill. They’ve sort of fixed things since then, but let’s be honest: TSB’s still that kid picked last for dodgeball in the UK banking playground.

Why sell now? Three words: Brexit, competition, and BBVA. Margins are thinner than my patience in traffic, and those digital-only banks aren’t helping. Plus, dumping TSB might just make BBVA lose interest. Or backfire spectacularly. Banking’s fun like that.

Who’d Even Want TSB?

Rumors say Santander UK and Virgin Money are sniffing around. Private equity guys too—the type who love a fixer-upper. But here’s the catch: TSB comes with baggage. Like, “ex still has the keys” baggage. Their tech systems? Ancient. Their rep? Not great. And regulators will be all over this like seagulls on chips.

Oh, and if TSB gets gobbled up by a bigger fish? Say goodbye to more competition. Because what the UK needs is fewer banking options, right? (That was sarcasm, by the way.)

What Happens Next?

Scenario 1: Sabadell sells TSB, BBVA throws a tantrum and walks away. Sabadell survives—for now. But then what? They’ll need to prove they can stand alone. Not easy when everyone’s merging around you.

Scenario 2: BBVA comes back with more cash. Like way more. Because banking mergers are basically auctions where everyone’s bluffing until they’re not.

Or—plot twist—regulators step in. Wouldn’t be the first time. Either way, Spain’s banks are in for a wild ride. And the UK? They’ll just add this to their post-Brexit banking headaches.

The Bottom Line

This isn’t just about numbers on a spreadsheet. It’s about survival, ego, and who blinks first. However it plays out, one thing’s certain: tellers aren’t the only ones counting—the whole industry’s watching.

If You Want to Go Deeper

• BBVA’s original offer (translated and everything)
• TSB’s latest numbers—bring coffee
• How bank mergers actually work (spoiler: it’s complicated)

Source: Financial Times – Companies