BBVA managers have recalled the authorizations they have to overcome. The takeover bid must be accepted by at least 50% of Sabadell shareholders, but first it must pass the BBVA shareholders meeting and achieve approval from the CNMC, which oversees competition, and British regulators.


The Minister of Economy of the Generalitat, Natàlia Mas, has reiterated her rejection of BBVA's hostile takeover of Banco Sabadell and has thanked the Government for also rejecting the operation. In an interview on RAC1, Mas indicated that this operation comes at a “dangerous” moment for Catalonia because “at this moment the territory is in a process of reindustrialization.” For the head of Economy, the takeover bid for Sabadell would “eliminate competition” and the big “losers” would be the Catalan SMEs because they would be “orphaned of financing.” Likewise, she has criticized that “in Catalonia we would have the highest level of banking concentration in Europe.”


BBVA is considering a period of between 6 and 12 months to complete the takeover bid for Sabadell. He believes that 6 months is how long it will take for the Government to approve the merger, and then the integration could be extended for 6 more months. They anticipate that the merger will be a reality in mid-2025.


Regarding the future of TSB, Torres and Genç are not clear, although they assure that they like the British subsidiary of Sabadell: “We will make decisions when the time is right, we are starting now”, but “we like their franchise and TSB is part of it ”.


BBVA assures that Sabadell's integration offer, both the three directors it offered and maintaining the operational headquarters in Sant Cugat del Vallès, still stands despite having taken the step of presenting the hostile takeover bid. The bank's directors explain to analysts that they like Sabadell's business model and want to maintain it.


BBVA executives explain that they have not improved the offer compared to last week's because it seemed “reasonable” to them to convey to the shareholders the same offer as to the Sabadell board. Regarding the reputational damage that the hostile takeover will cause, he assured that “it seems acceptable.”


Regarding the Government's rejection of the takeover bid, BBVA defends that it will create a bank “that will improve the support we give to society through credit, and the resulting entity will better support the economy, with a better tax base for the country”. The bank's directors believe that the Government's rejection is due to “the fact that there are elections in Catalonia and there is a lot of politicization.”


The Spanish employers' association is clear: “they are free to act, to participate and to make offers or not.” This is how the president of the CEOE, Antonio Garamendi, spoke when asked about the banking operation during a speech at the 'V International Expansion Forum'. Garamendi has stated that, as the governor of the Bank of Spain, Pablo Hernández de Cos, said yesterday, he “is not the right person” to give his opinion on this takeover bid. He also recalled that both BBVA and Sabadell are partners of the CEOE, so it is something that “remains in the private sphere and what I believe is that the decisions must be respected.”


“With all due respect to Sabadell, we believe it is a very attractive offer. There was no plan B beyond what we have done,” Torres assured analysts.


Carlos Torres and Onur Genç assure analysts that they could not improve the offer, so they admit that they do not have much room for maneuver if the market does not respond positively to the takeover bid.


Yolanda Díaz has pointed out that BBVA's hostile takeover bid for Sabadell is an operation “contrary to the interests of Spain”. The second vice president of the Government, Minister of Labor and Social Economy and leader of Sumar, has denounced through social networks that the operation “would destroy a lot of employment, cause financial exclusion and more oligopoly.” The second vice president also highlighted that this operation would mean “liquidating Sabadell for the benefit only of the foreign investment funds that own BBVA.”


The Catalan employers' association Foment del Treball has criticized BBVA's hostile takeover of Banco Sabadell. “If it prospers, the big losers will be the Catalan SMEs and, therefore, also the Spanish companies.”“, he said in a statement. He assured that “with the disappearance of Banco Sabadell, many SMEs will be left without financing.” “For Foment del Treball, the growth of financial concentrations should be in Europe and not in Spain,” he concluded. .

Josep Sanchez Llibre a l'Assemblea 2024 Foment.


He The Government has shown its rejection of BBVA's decision to propose a hostile takeover bid (OPA) to Banco Sabadell, “both in form and substance” and considers that this operation “introduces potential harmful effects into the Spanish financial system.” This is indicated by sources from the Ministry of Economy, Commerce and Business, which detail that said operation “would mean an increase in the level of concentration that could have a negative impact on employment and the provision of financial services.”


BBVA wants to buy Sabadell, Yes or yes. He tried it last week in a friendly way, presenting his rival with a merger proposal. And he does it now in a hostile way, going to the market, after his offer was rejected. The bank has studied its numbers well, wants to grow and balance its balance sheet. Currently, more than 60% of its profit is concentrated in Mexico and Turkey, and Spain weighs less than 30%, so it has proposed to grow here. BBVA aspires to be “the second financial institution in Spain” after the closing of the operation, as reported this Thursday.


BBVA called analysts and the press this morning to explain the reasons and details of the hostile takeover of Sabadell. We will be there to tell you about it live.

Onur Genç and Carlos Torres. Photo: Europa Press


Banco Sabadell has reiterated its rejection of the hostile Public Acquisition Offer (takeover bid) formulated by BBVA over 100% of his actions. The new attempt is an identical proposal to the one presented a week ago, so the Catalan entity has referred to its communication on Monday, when it ruled out the operation on the grounds that it “significantly undervalues” the Sabadell project and its growth prospects as independent entity.


The stock market reacts to the hostile takeover: Sabadell investors like it, since after the opening of the session, its shares skyrocket 5%, but not BBVA investors, who fall a similar percentage. At 9.08, the Basque bank's securities are trading at 9.73 euros, half a euro less than yesterday's close, and those of the Catalan bank are at 1.89 euros, one cent more than this Wednesday.


After days of speculation, The Sabadell council met this Monday, May 6, to analyze the offer, and rejected it. He considered that he undervalued the bank's future project and that the price was not attractive to shareholders. Yesterday it was learned that the day before, Sunday the 5th, Carlos Torres had sent a letter to Josep Oliu assuring him that they did not have the capacity to improve the price.

Josep Oliu. Photo: EFE


The soap opera started on Tuesday of last week, April 30, when BBVA's interest in presenting an offer for Sabadell was leaked. The shares of the Catalan bank soared, while those of the Basque bank fell. The following day, May 1, a holiday, the entity chaired by Carlos Torres made public the letter sent to Josep Oliu with the offer, which in addition to the price, included cost savings and the maintenance of the Sabadell de Sant Cugat offices as a of its operational headquarters.


Sabadell rejects BBVA's takeover bid. Bank sources have explained to Europa Press that they reiterate Monday's opinion on the offer, when they considered it insufficient. “The board has full confidence in Banco Sabadell's growth strategy and its financial objectives and is of the opinion that its strategy as an independent entity will generate greater value for its shareholders,” they said on Monday.

You May Also Like

More From Author

+ There are no comments

Add yours