Banco de Sabadell, S.A. has been given the go-ahead to buy TSB Banking Group plc.

It has received all relevant regulatory clearances, which effectively completes the sale of Lloyds Banking Group’s remaining 40.01% stake in TSB to Sabadell for around £680 million.

The sale of TSB was necessary due to European Commission (‘EC’) rules towards state aid, following the state bailout of Lloyds Banking Group during the final crisis.