Sabadell gains EU approval to acquire British lender TSB

BRUSSELS, May 18 (Reuters) - Spanish lender Banco Sabadell secured European Union regulatory clearance on Monday for its 1.7-billion-pound ($2.66 billion) acquisition of British peer TSB to reinforce its presence in the British market.

The European Commission said the combined company's moderate market share and limited overlap did not pose any competition issues.

The EU competition watchdog last year ordered Lloyds Banking (Xetra: 871784 - news) Group to sell TSB in return for allowing its 20-billion-pound bailout during the financial crisis.

($1 = 0.6379 pounds) (Reporting by Foo Yun Chee)