NatWest tipped as buyer amid bank takeover talk – Daily Business

NatWest Group is being seen as the most likely acquirer of TSB, which could spark a consolidation of the banking sector.

A sale price of about £2.6 billion has been suggested as TSB’s Spanish owner Sabadell once again looks for a buyers of its UK banking franchise.

NatWest, which snapped up most of Sainsbury’s Bank for £125 million, has been linked to the UK interests of the Spanish bank Santander, while Metro Bank is said to be in the sights of Pollen Street Capital, the private equity firm. Barclays acquired most of Tesco Bank’s assets in a £600m deal.

The latest moves follow Nationwide Building Society’s £2.9bn acquisition of Virgin Money, while Coventry Building Society bought the Co-op Bank for £780m.

Analysts believe Pollen Street could be seeking to merge Metro Bank, now focused on business banking, with Shawbrook Bank, a specialist lender it co-owns with BC Partners. PO.

Sabadell is said to have opened the books on TSB, which it bought for £1.7bn in 2017. Five years ago it asked Goldman Sachs to find a buyer for TSB but later decided to retain it after it improved its performance.

TSB, based in Edinburgh, has had a complicated ownership history. It was part of Lloyds TSB, which later became Lloyds Banking Group. It has about five million customers and 5,000 employees.

It was floated briefly in 2014 after Lloyds was forced to sell it by the European Commission as the price of receiving state aid. An earlier attempt to sell it to the Co-operative Bank fell through.

Current activity in the sector has been spurred by improved profitability during the period of high interest rates, while the Chancellor has been making positive noises around regulation.

NatWest Group has recently returned to full private ownership and its board has made no secret of its interest in expansion through acquisition.