Sabadell has rejected a hostile takeover bid from BBVA, which offered 1 BBVA share for every 4.83 Sabadell shares. The bank’s board and the government have also expressed concerns about the operation, citing issues of banking concentration and territorial cohesion.
The decision to accept the offer lies with Sabadell’s shareholders, who must weigh the value of the bank against the offer from BBVA. The majority of Sabadell’s shares are held by large investment funds, and shareholders will need to carefully consider the potential impact of a merger on their investment.
BBVA’s president, Carlos Torres, believes that 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 arguing that the exchange ratio undervalues its growth prospects.
The takeover bid by BBVA is unprecedented in the Spanish market, which traditionally resists hostile bids. The process will involve obtaining authorizations from regulatory bodies and the Ministry of Economy. BBVA must now submit all documentation related to its offer to the CNMV, which could take more than six months to resolve.
The launch of this takeover bid marks a significant development in Spain’s banking sector, with Sabadell shareholders now facing a crucial decision about their future. The outcome of this bid will have far-reaching implications for both BBVA and Sabadell in Spain’s financial landscape.
