The group has decided that as UK subsidiary Abbey is acquiring the deposit base from B&B, it will be Abbey that pays the £612m in cash out of its own resources. The deal will increase Abbey’s market share in deposits from about 6% to 10%.
Alongside Abbey and B&B’s deposits, Santander also acquired Alliance & Leicester in July for £1.2bn. The combined branch network across the lenders will now total 1,286 offices with a combined client base of 24 million consumers.
The deal will mean the addition of 1,400 employees to the Santander group, with restructuring costs expected to run to £50m. These costs will cover system changes as well as the relocation of some B&B offices which overlap with Abbey branches.
The Treasury has confirmed that the remaining B&B assets, including mortgages, will be nationalised.