Santander has agreed to buy British high street lender TSB for £2.65bn, in a move that underlines the Spanish lender’s commitment to its UK retail business just months after it entertained bids for the unit. The bank beat British rival Barclays which also put in a formal bid for the Sabadell-owned unit, according to people familiar with the matter.

British bank TSB will be sold to high street rival Santander for £2.65billion after days of speculation. The deal to acquire TSB from the Spanish parent firm of TSB, Sabadell, beating rival Barclays, was confirmed today (July 1).