Spanish lender Banco Sabadell has got the go-ahead from the European Commission (EC) to buy TSB for £1.7bn.
The EC said that ot saw no competition issues arising, due to the market share of the new company.
The sale of TSB was initiated by the EC itself last year after, when it ordered Lloyds to sell off TSB in exchange for the EC’s allowing its £20bn bailout back in the depths of the financial crisis (2008).
In a statement, Sabadell said:
On 8 May 2015, Banco de Sabadell announced that its offer for TSB Banking Group had become unconditional as to acceptances and that the offer had been extended until further notice.
Sabadell is pleased to announce that it has today received clearance under the EU Merger Regulation from the European Commission, meaning that the Condition relating to European Commission clearance has now been satisfied.
TSB’s boss, Paul Pester, is expected to remain in his role after the takeover. He assured customers and staff that only five roles would be affected by the takeover, all of which would be in investor relations.
Earlier in May, Lloyds announced that the sale of TSB would result in £660m costs as a result of legacy charges. TSB has 631 branches and 4.6m customers.