Spanish megabank in the making: BBVA gets greenlight to buy up Banco Sabadell

Published on 05/09/2025 - 12:26 GMT+2

The Spanish banal marketplace regulator authorised BBVA's takeover bid for Banco Sabadell connected Friday.

This concludes nan long-standing efforts of nan Bilbao-based Spanish banking giant, BBVA trying to bargain up its competitor.

"The Board of nan Spanish Securities and Exchange Commission (CNMV) has authorised nan voluntary nationalist connection for nan acquisition of shares successful Banco de Sabadell, S.A. (Banco Sabadell) presented by Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)," nan connection said.

BBVA takeover

According to nan ruling, nan position of BBVA's takeover bid, revenge connected 24 May 2024, are successful compliance pinch existent regulations. Therefore, nan slope is authorised to make an connection to nan shareholders of Sabadell, which includes 1 recently issued BBVA stock positive a rate costs of €0.70.

"It is simply a very charismatic offer, whose existent balanced worth represents Banco Sabadell’s champion valuation successful much than a decade, while incorporating a premium intelligibly higher than that of caller akin transactions successful Europe," BBVA commented aft nan ruling.

CNMV ruled that BBVA now has 30 days, opening connected 8 September, to get capable Banco Sabadell shareholders to judge their proposal. "The connection is conditional connected nan acceptance of a minimum number of shares representing much than half of nan voting authorities of Banco Sabadell, excluding treasury shares," publication nan statement.

Banco Sabadell has precocious sold its British subsidiary TSB, weakening their entreaty arsenic a merger target and expanding its efforts to repel BBVA's interest. Sabadell besides aimed to boost its returns to its shareholders, successful different effort to trim its entreaty to BBVA.

In July, Banco Sabadell announced a caller strategical scheme to present €6.3 cardinal of returns to shareholders complete nan adjacent 3 years arsenic it kicks disconnected a programme accelerating maturation and maintaining sustainable shareholder returns.

Sabadell besides keeps a tab connected its website for investors dedicated to nan takeover bid, indicating really overmuch shareholders would suffer if they agreed to nan merger.

But BBVA is besides making bold promises successful an effort to pull shareholders' trust. After nan ruling, BBVA Chair Carlos Torres Vila said, "Following nan merger, Banco Sabadell shareholders are group to get net per stock 25% higher than they would pinch a standalone Banco Sabadell."

“The national of 2 highly complementary banks astatine their champion infinitesimal has an undeniable logic, and is beneficial for shareholders, customers and labor of some entities, and nine arsenic a whole", adding that they tin create a " European leader successful maturation and profitability."

The stock prices of some lenders were up 0.2% astatine noon successful Europe.