Bank speculation

Virgin Money among potential bidders for TSB

A potential tie-up would unite two Scotland-based banks

Virgin Money and OSB Group, formerly OneSavings Bank, are among a group of challenger banks expected to show interest in TSB which is due to be sold by its Spanish owner Sabadell.

A deal with Glasgow-based Virgin could create unite two Scotland-based brands in a new mega bank north of the border.

Residential mortgage lender Kensington Group and credit card provider NewDay are also likely to join the race, according to the Reuters agency, as their respective private equity owners seek ways to add scale and banking capabilities.

Sabadell has hired Goldman Sachs to find a buyer for Edinburgh-based TSB following the collapse of merger talks with BBVA.

It is currently sounding out possible bidders as it wants to launch an auction process in the first quarter of 2021 and wrap up the sale by next summer, according to sources.

TSB was demerged from Lloyds Banking Group in 2013 and enjoyed a short return to being an independently-listed bank until Sabadell acquired it two years later.

See also

Banks flex their merger muscles in readiness for new round of takeovers

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