Santander is bolstering its British foothold with the proposed acquisition of TSB, despite the recent underperformance of its own U.K. branch.

Spain's Santander on Tuesday said it had reached an agreement to acquire smaller rival Sabadell's British unit TSB for initially 2.65 billion pounds ($3.64 billion) in an all-cash deal, subject to approval by Sabadell shareholders.

The Spanish lender is about to become the third-largest bank in the UK by share of personal current accounts, after the deal is closed.View on euronews