Sabadell gives Goldman mandate to sell TSB – report

TSB CEO Debbie Crosbie

Spanish bank Banco Sabadell has given Goldman Sachs a mandate to sell Edinburgh-based TSB, its loss-making UK business, according to a Reuters report on Friday.

Sabadell and Goldman Sachs declined to comment.

Sabadell and its larger rival BBVA earlier on Friday announced they had called off merger talks.

Sabadell said in a press release after the merger talks were called off on Friday that it would now analyse “strategic alternatives” for its international assets, including TSB, which it bought from Lloyds Banking Group Plc in 2015.

“Banco de Sabadell will launch a new strategy that will prioritise its Spanish domestic business to generate efficiencies using the group’s capital and resources, thereby increasing profitability and creating value for its shareholders, after its board of directors unanimously agreed to end talks with BBVA given both parties did not reach an agreement on the exchange ratio of their shares,” said Sabadell.

“While the main components and objectives of the new strategy will only be published in the first quarter of 2021, Banco de Sabadell is prepared to say that it will launch a transformation programme in its retail banking business which will have a neutral impact on capital and generate more efficiencies in this segment.

“Sabadell will also analyse strategic alternatives for creating shareholder value with regard to the group’s international assets, including TSB.

“Sabadell’s leadership in Spain’s SME segment and top customer satisfaction ratings provide for a highly profitable solid domestic franchise.

“The bank looks forward to implementing its new strategic plan which will improve its efficiency and organic capital generation, focusing on the segments that generate greater profitability and added value.”

 

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.