Sabadell agrees to sell UK's TSB bank to Spanish rival Santander for 3.1 billion euros

Spain's Banco Sabadell has agreed to sell the UK's TSB bank to Spanish rival Santander for 3.1 billion euros.

Sabadell has owned TSB since 2015 and has recently been the subject of a controversial planned takeover by another Spanish rival, BBVA.

That takeover looks less likely if the sale of TSB goes ahead. Buying TSB helps Santander rival the biggest UK banks. It beat Barclays in the bidding.

There had been doubt about Santander's commitment to its British arm, but the firm said it was excited about growing in the UK with TSB. The deal still needs regulatory approval.