A Spanish lender has been given the green light by regulators to take indirect control of TSB – if it succeeds in taking over the High Street bank's owner.
BBVA earlier this year launched a £10billion hostile takeover offer for Spanish rival Sabadell.
The deal would require authorisation from a number of countries where Sabadell operates, including the UK where it owns TSB.
BBVA said it has received authorisation from the Prudential Regulation Authority (PRA) 'for BBVA's indirect acquisition of control of TSB'.
Sabadell, Spain's fourth largest bank, bought TSB for £1.7billion in 2015. TSB has since closed more than half of its branches.
TSB staff are anxious about the future should BBVA take over, with some speculating it could be sold to private equity or return to the stock market.
