Macfarlanes, A&O Shearman and Uria Menendez have picked up lead roles on Santander’s £2.65bn acquisition of TSB, in the latest instance of consolidation in the global banking sector.
The deal marks a first-time instruction for Macfarlanes by TSB’s owner Banco Sabadell, with the City firm introduced to the Spanish financial services group by its local counsel Uria.
Corporate and M&A co-head Jessica Adam and private equity and M&A partner Justin Hope are leading Macfarlanes’ team on the transaction, with support from colleagues in the firm’s commercial, financial services, tax, reward, competition and employment practices.
Uria is advising Sabadell on all Spanish law aspects of the transaction, fielding a team led by capital markets head Javier Redonet and corporate partner Carolina Albuerne, both of whom are based in Madrid.
Santander has turned to A&O Shearman for advice on the deal, which is expected to close in the first quarter of 2026, following approval from Sabadell shareholders and regulators.
The A&O Shearman team is being led by M&A partners Hugh Robinson in London and Inigo del Val, Jane Finlayson-Brown, Bob Penn, and David Weaver, supported by counsel Jean Price, and senior associate Leticia Segarra-Osorio, Greg Talbot, Reka Palla, and associate Andrew Pang.
The planned sale comes a decade after TSB was acquired by Sabadell in March 2015 for £1.7bn. That deal saw legacy Allen & Overy take the lead role for Sabadell, with Linklaters acting for TSB’s former owner, Lloyds Banking Group, and Herbert Smith Freehills advising TSB.
Sabadell is currently facing a hostile takeover bid by Spanish rival Banco Bilbao Vizcaya Argentaria (BBVA), which on Monday announced that it intended to proceed with its bid, despite restrictions issued by the Spanish government. BBVA is reportedly being advised by Garrigues.
