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Santander UK has completed its near £3billion takeover of smaller rival TSB, it was announced on Friday. The major deal is believed to mark the single biggest investment in Britain's banking sector for more than 15 years. The deal went through on Thursday after recently securing the green light from regulators in the UK and Europe, says Santander.

The takeover means that the new combined group will be the third-largest bank in the UK for current accounts and the fourth-largest formortgages. The new group will have close to 28 million customers nationwide, with TSB currently having around 5 million customers. Customers of both Santander and TSB can continue using their current accounts and bank cards in the same way, and no changes will be immediate.

Mahesh Aditya, Santander UK's new chief executive, said: "This is excellent news for UK banking, with the acquisition representing the single largest investment in the sector for over 15 years.

"Bringing TSB into the Santander group strengthens competitiveness in the market and is an important step in creating the best bank for customers."

Meanwhile, Nicola Bannister, who became chief executive of TSB on Friday, said: "Today marks a significant new chapter for TSB as we become part of Santander.

"I look forward to leading TSB as we combine the very best of these two great businesses."

It comes after Santander agreed a £2.65 billion buyout of TSB from Spanish banking group Sabadell last year, but said the final price paid rose to £2.9 billion on completion.

The bank is reportedly looking to achieve cost savings of at least £400 million following the acquisition.

Santander is a wholly-owned subsidiary of the major global bank Banco Santander. Meanwhile, TSB has been a subsidiary of Sabadell Group since 2015.