TSB is up for sale, again.
Sabadell – which is trying to fend off a proposed bid by Banco Bilbao Vizcaya Argentaria (BBVA) worth some £10.5bn – is exploring the sale of TSB.
Sabadell has said that it’s received several preliminary non-binding expressions of interest.
Members will be aware that Santander recently rejected a bid from NatWest worth £11 billion for its UK retail bank. The Government has recently sold its final stake in NatWest and its clear the bank wants to expand aggressively in the UK market. Santander is off the table but TSB, which is simply treading water, could be its next target.
And don’t forget that Nationwide, run by the newly ennobled Dame Debbie Crosbie, ex CEO of TSB, could also be in the running to buy the bank. Ms. Crosbie will be uniquely placed to execute such a takeover. She knows where all the TSB bodies are buried and how much the business is worth. That kind of information would be invaluable if a takeover was to be successful.
Analysts have suggested a price tag of £1.2 – £2 billion for TSB, which has 5 million customers, 5,000 employees and 175 branches.
But in all this continuing speculation about the future of TSB, it’s the staff who are forgotten. We’ve said it before that whenever there is a merger or a takeover it’s always the employees that lose out. If Sabadell sells, to NatWest or Nationwide or some other buyer, it will be no different this time. We can expect more branches and offices to close and more jobs to go.
The FCA, PRA and Competition and Markets Authority will have important roles to play in determining who buys TSB, assuming there’s a sale, and we will campaign to make sure that the interests of staff are not lost in the rush to make money.
We will keep members informed of developments.
Members with any questions should contact the Union’s Advice Team on 01234 716029 (choose Option 1).