Banco Sabadell Sounds Out Credit Agricole, BNP And Zurich For TSB Sale

TSB takeover by SabadellA man withdrawing money from a TSB ATM

After the failed talks on merger with BBVA, the Catalan lender has noted expressions of interest in its UK subsidiary TSB, due to to be sold in 2021 at a price of over 800 million euros, according to the newspaper Cinco Días. So the bank may be exploring possibilities with Credit Agricole, BNP Paribas or Zurich Insurance Group and other European firms to reach alliances. Furthermore it has renounced selling its bank in Mexico.

Market rumours point to the difficulty of transferring TSB at a reasonable price and also flag Banco Santander as one of the candidates to buy it. TSB’s technological platform caused Sabadell a lot of trouble two years ago. But it is now being re-organised and is its great attraction, since it is one of the most advanced in the British financial system.

Several investment banks value TSB after the presentation of its strategic plan, which will happen in 2021, at 875-1.3 billion euros. However, there are also other banks, such as Barclays, which consider it unlikely Sabadell will sell TSB at this time given the uncertainty over Brexit.

Sabadell’s objective would be to sell its UK subsidiary in the second half of 2021, once the restructuring has been completed, which could enhance its value.

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