Spanish lender Banco Sabadell has received green light from Britain’s financial regulators for its £1.7bn acquisition of Britain’s TSB Banking, a spin-off of Lloyds Banking.
The deal, first announced in March 2015, has received approval from the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA).
Following the receipt of all relevant regulatory clearances, TSB shares will be cancelled from the London Stock Exchange on or around 28 July 2015.
Sabadell chairman Josep Oliu commented: "Today marks the beginning of a major project. This is a milestone that enables us to enter a market with vast opportunities.
"Furthermore, TSB has a highly professional management team which is successfully delivering its business plan and which is committed to growing TSB further still as part of the Sabadell Group. TSB will enable us to increase our international footprint and diversify our business activities. It’s a major opportunity".
Sabadell said that the deal will have a neutral impact on its CET1 ratio. After the TSB takeover, Sabadell’s 22% assets will be located outside Spain, compared with 5% at present.
TSB Banking Group is the seventh largest retail banking group in the UK by branch network. With over £21.4bn in loans, it is present in over 600 towns and cities across Britain, has 8,700 employees and 4.7 million customers.