Fears banks could 'disappear' from two Shropshire towns after TSB takeover deal
A major bank could be set to disappear from Shropshire's high streets after it was bought out by a rival.
High street banking giant Santander has agreed to buy rival lender TSB for £2.65 billion, a move which would create the UK’s third largest bank by the number of personal current accounts, amid fears the deal could lead to branch closures.
In a presentation to analysts, Santander said it plans a “rationalisation” of the overall branch network and structure, with aims to look at “overlaps” involving properties.
TSB currently has branches in Telford town centre and Oswestry - both towns also have a Santander branch.
The news could represent a fresh blow to high street banking in the county, after plans for a banking hub in south Shropshire were turned down by LINK this week.
TSB runs around 175 branches across the UK and employs more than 5,000 people, while rival Santander runs 349 branches and has around 18,000 staff.
Both lenders have cut their number of sites in recent years as many customers have shifted to online banking.
It comes a decade after Sabadell bought TSB for £1.7 billion to gain a foothold in the UK, a year after Lloyds had spun off TSB in a stock market float.
In May, TSB saw first-quarter profits nearly double thanks to cost-cutting and improved mortgage lending ahead of April’s stamp duty deadline.
Marc Armengol, TSB chief executive, said: “TSB is a truly special bank, run by a first-class team that deliver trusted service and support for customers, day in and day out.
“Today’s announcement represents the next exciting chapter for this successful business, as part of Santander, a highly regarded banking group.
“I believe this will prove to be an excellent fit for our loyal customers.”
Ana Botin, Banco Santander’s executive chairwoman, said: “The acquisition of TSB represents a continuing strategic commitment to our customers in the UK, offering a compelling opportunity that is financially attractive to our shareholders and aligned with Santander’s long-term objectives.
“It strengthens our franchise in a core market through the acquisition of a low-risk and complementary business that adds to our diversification.”
