European stocks fall; Lenders NatWest and Santander reportedly interested in TSB takeover

European markets ended the trading day lower as investors monitored the latest developments in the Middle East.

The pan-European Stoxx 600 provisionally closed 0.34% lower, with healthcare stocks leading the decline.

Germany’s DAX index and the French CAC 40 both ended the trading day around 0.4% lower, while the  FTSE 100 bucked the trend to close 0.1% higher.

A spate of interest rate decisions from central banks are due tomorrow, including the Bank of England, the Swiss National Bank and Norges Bank. Traders are also bracing for the Federal Reserve’s latest rate policy decision, due later today.

British lender TSB has attracted acquisition interest from larger rivals NatWest and Santander, according to two media reports.

Spanish financial news outlet Vozpopuli reported overnight that TSB’s parent Sabadell had been approached by U.K. bank NatWest, formerly known as Royal Bank of Scotland, expressing takeover interest.

According to the news outlet’s sources, NatWest is expected to make a 2.3 billion euro ($2.65 billion) offer for TSB.

British broadcaster Sky News also reported that Santander had approached Sabadell with similar intentions for TSB.

Earlier this year, NatWest also reportedly made a £11 billion offer ($14.8 billion) to acquire Santander’s U.K. banking division.