Regulators have given a Spanish bank the green light to take indirect control of TSB, if it succeeds in acquiring the owner of the High Street bank.
Earlier this year, BBVA launched a £10bn hostile takeover bid for Spanish rival Sabadell.
The deal would require approval from several countries where Sabadell operates, including the UK, where it owns TSB.
Takeover: BBVA launched a £10bn hostile takeover bid for Sabadell earlier this year
BBVA said it has received authorisation from the Prudential Regulation Authority (PRA) “for the indirect acquisition of control of TSB by BBVA”.
Sabadell, Spain’s fourth-largest bank, bought TSB for £1.7bn in 2015. TSB has since closed more than half of its branches.
TSB staff are concerned about the future if BBVA takes over, with some speculating it could be sold to a private equity firm or returned to the stock market.
