Spanish bank BBVA has announced that its hostile takeover bid for Banco Sabadell will officially commence on Monday, following the approval from Spain’s market regulator. The tender offer, valued at €14.9 billion (approximately MX$326 billion), will be open for a period of 30 days, allowing Sabadell shareholders to submit their shares until October 7. The results of the bid are anticipated to be revealed a week later.
Should this merger proceed, it would establish a new financial giant in Spain, creating the country’s second-largest bank by assets, accumulating more than €1 trillion, and placing it just behind Caixabank. BBVA’s objective is to secure a majority of the voting rights, specifically targeting 49.3% of Sabadell’s outstanding shares.
In its bid, BBVA highlighted potential cost savings of €900 million, an increase from the previously estimated €850 million. However, this new projection for achieving these synergies is now extended to 2029, following a delay by the Spanish government that postpones a full merger for at least three years.
Sabadell’s board has a window of 10 business days starting September 8 to respond to BBVA’s offer. Notably, minority shareholders, who constitute about half of Sabadell’s capital, will significantly influence the outcome of the takeover.
In addition to the approvals from local regulators, the US Securities and Exchange Commission has also greenlit the proposal, enabling BBVA to decrease the acceptance threshold to 30%. Under this adjusted condition, BBVA would be obligated to launch a subsequent cash tender for any remaining shares within a month.
The current offer from BBVA comprises one newly issued ordinary share plus €0.70 in cash for every 5.5483 ordinary shares of Sabadell. Recently, Sabadell’s shares have been traded above the original 30% premium offered back in April 2024, indicating that they have outperformed BBVA since the initial announcement.
Carlos Torres Vila, Chairman of BBVA, emphasized the advantages of union with BBVA, stating in a public communication, “Now is the time to join the union with BBVA, the best possible partner, a European leader in growth and profitability.”
