Santander has completed the acquisition of TSB for £2.65 billion. This transaction marks the largest investment in the UK banking sector in over 15 years. The merger became effective on May 1, 2026.
Approximately five million TSB customers will join Santander UK. This acquisition brings around £71.5 billion in gross customer assets to Santander. TSB is now a wholly owned subsidiary of Santander UK.
Key details of the acquisition:
- David Oldfield has replaced Nick Prettejohn as chair of TSB.
- Nicola Bannister, Alison Straszweksi, and Mahesh Aditya will join the TSB board.
- The transaction is expected to take place in the first half of 2027.
Santander is now the third-largest bank for customer accounts in the UK and ranks fourth for mortgage lending. Lloyds remains the largest retail bank with approximately 26 million customers.
Mahesh Aditya stated, “This is excellent news for UK banking with the acquisition representing the single largest investment in the sector for over 15 years.” He added that bringing TSB into the Santander group strengthens competitiveness in the market.
Officials have not confirmed how this merger will impact existing customer accounts or mortgage lending strategies moving forward. Further developments are anticipated as integration plans unfold.