With AandL shares valued at 299p per share, AandL shareholders will receive one Santander share for every three AandL shares, as well as the previously announced interim dividend of 18 pence in cash per AandL share.

Darren Cook, mortgage expert at Moneyfacts.co.uk, commented: "The merger of these two high street names will likely briefly bring increased confidence to the industry. However, it will also bring further reduction in consumer choice, which is already under pressure and has seen significant reductions, particularly in the mortgage market."