BBVA has launched a hostile takeover bid for Sabadell, offering 1 BBVA share for every 4.83 Sabadell shares. The board of Sabadell has expressed its rejection of the bid, stating that it undervalues the bank. The Government also rejects the operation, citing concerns about banking concentration and territorial cohesion.
The decision to accept the offer lies with the shareholders of Sabadell, who must decide whether the bank is worth more alone or with the help of BBVA. Sabadell does not have a controlling shareholder, with the majority of its shares held by large investment funds. Shareholders will have to weigh the offer which values Sabadell at almost 11.6 billion euros.
BBVA’s president, Carlos Torres, believes the merger will create an entity with greater scale and positive impact in the market. However, tensions between BBVA and Sabadell have been escalating, with Sabadell insisting that the exchange ratio undervalues the bank’s growth prospects.
The takeover bid by BBVA is unprecedented in the Spanish market, which traditionally repels hostile bids. The process will involve obtaining authorizations from regulatory bodies and the Ministry of Economy. BBVA must now send all documentation of the offer to the CNMV, kicking off a process that could take more than six months to resolve.
The launch of the takeover bid by BBVA marks a significant development in the banking sector, with Sabadell shareholders now facing a crucial decision about the future of the bank. The outcome of this bid will have far-reaching implications for both BBVA and Sabadell in the Spanish financial landscape.