Daily Management Review

Spain's Banco Sabadell Is Going to Buy TSB


03/12/2015


Spanish bank Banco de Sabadell can buy British TSB Banking Group at the price of 340 pence per share, said British bank.



Photo by valencianews.es
Photo by valencianews.es
Based on the fact that the total number of shares of British TSB Banking is about 500 million, we can assume that the transaction amount will reach about 1.7 billion pounds (2.56 billion dollars).

The Council of TSB acknowledges having received a preliminary takeover bid from Sabadell, which may or may not lead to a formal proposal for the entire share capital of the company. Offer includes 340 pence in cash per share TSB", - said in a press release TSB representative.

Sabadell should take the final decision on the acquisition of the British bank until the evening on April 9. The deal between the two companies will also have to get approval from regulatory authorities, the report says.

According to preliminary discussions of representatives of both companies, Sabadell, in the case of the transaction, will support and accelerate TSB retail growth strategy and expand the presence of the British bank in the small and medium-sized businesses.

Sabadell is a strong competitor in the domestic market (Spain - Ed.), it also secured a successful international presence in the United States. Sabadell believes that the current dynamics of the banking sector and the macroeconomic environment makes the UK an attractive market for future investments, - said the TSB, whose shares jumped 26% on such news.

Lloyds TSB has absorbed during the 2008-2009 crisis, while receiving state aid by 30 billion dollars. Now the EU antitrust authorities require the bank to sell part of its assets. For its part, the fifth largest bank in Spain, Banco Sabadell will be able to expand its presence abroad and thus compensate for the decline in the national market of financial services.

Lloyds has absorbed TSB during the 2008-2009 crisis, while receiving state aid by 30 billion dollars. Now the EU antitrust authorities require the bank to sell part of its assets. For its part, the fifth largest bank in Spain, Banco Sabadell will be able to expand its presence abroad and thus compensate for the decline in the national market of financial services. According to the statement, if the transaction is assumed, then the British bank will continue to operate under its own brand. Previously TSB served on Lloyds. Divided by the background of the crisis, TSB returned under its own brand on the stock exchange less than a year ago.

Lloyds, which owns 50 percent of TSB, according to sources in the financial market, favorably considers the prospect of a deal. According to the requirements of European regulators, Lloyds TSB is obliged to sell under the agreement for his salvation / by partial nationalization / authorities during the financial crisis. - Bloomberg






Science & Technology

Some Information About Their Self-Driving Car Research Has Been Disclosed By Apple Scientists For The First Time

A Massive Data Breach Was Covered Up By Uber By Paying Up Hackers

A City Is Can Be Converted To A Living Organism, Showcases China’s Huawei

Workers Would Be Helped To Lift More By These Robotic Vests

British Parliament to assess impact of e-cigarettes

Wind energy will provide 30% of Europe's needs by 2030

A Major Platform For Artificial Intelligence Is Its Mobile Devices: Apple

Rumor: Apple will release a budget version of iPhoneX

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

World Politics

World & Politics

Trump: "North Korea supports terrorism"

U.S. Auto Demands Sees NAFTA Nations Locking Horns Even As The Fifth Round Comes To An End

North Korea Is Now Officially A State Sponsors Of Terrorism According To The U.S. Administration

Japan demands to lift embargo on food from Fukushima

Bernard Arnault clarifies on Le Monde’s “Paradise Paper” report

South Korea and the U.S. present a united front against the North Korean leadership

Europe is preparing an alternative to NATO

Ten smartest cities in the world