Santander UK has completed its £2.65 billion cash acquisition of TSB Banking Group, marking the single largest investment in the UK banking sector for over 15 years. The deal, which was finalised on 30 April 2026, follows regulatory approval from the Prudential Regulation Authority and the European Central Bank in March and April 2026.
The acquisition makes Santander UK the third largest bank in the UK based on personal current account balances and the fourth largest for mortgages. Combined, the two banks now serve nearly 28 million retail and business customers nationwide. The transaction is expected to contribute to a target increase in Santander UK’s return on tangible equity to 16% by 2028, with estimated cost synergies of at least £400 million.
There will be no immediate changes for either Santander UK or TSB customers, who can continue to use their products, accounts and cards in the same way. The acquisition will allow Santander UK to better support customers through increased investment in innovative products, its digital offering, as well as new and improved branch formats across the UK.
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Mahesh Aditya, Chief Executive Officer of Santander UK, said: “This is excellent news for UK banking with the acquisition representing the single largest investment in the sector for over 15 years. Bringing TSB into the Santander group strengthens competitiveness in the market and is an important step in creating the best bank for customers”.
He added: “As we enter the next phase, we remain focused on a seamless transition, and we look forward to welcoming TSB customers as we become one of the most substantial and competitive banks in the UK – a bank positioned for sustainable growth, long-term value, and genuine differentiation”.
Nicola Bannister, Chief Executive Officer of TSB, commented: “Today marks a significant new chapter for TSB as we become part of Santander. I look forward to leading TSB as we combine the very best of these two great businesses to offer even better banking for our customers”.
