Santander UK Group Holdings Plc said it reached an agreement with Santander UK Plc, Abbey National Treasury Services Plc and ultimate parent Banco Santander SA that formalizes the business transfers required for the implementation of its ring-fence structure.

Under the agreement, Santander UK and Abbey National Treasury will transfer their corporate and wholesale markets business, which would be prohibited in the ringfence, to Spain-based Santander, along with the businesses of Santander UK's Jersey and Isle of Man branches. In addition, Abbey National Treasury agreed to transfer to Santander UK materially all of its residual business.

Each transfer will be subjected to certain conditions, as well as regulatory and court approvals. Final completion of the transfers is expected to take place July 2018, ahead of the Jan. 1, 2019, deadline, according to the Oct. 16 statement.