The operation was notified to the CNMV by the bank chaired by Carlos Torres after its attempt at a friendly merger with the Catalan entity failed. The offer must be accepted by 50% of Sabadell’s shareholders, most of which are large investment funds.
BBVA has launched a public takeover bid (Hostile take-over for the full Sabadell Bankan operation that meets the same conditions as the merger proposal of the bank led by Carlos Torres and which was rejected by the Catalan bank.
The consideration offered by BBVA to Sabadell shareholders is one newly issued share 4.83 shares of Sabadell, as detailed in the offer communicated to the National Securities Market Commission (CNMV). The equivalent price of the cash consideration is 2.12 euros per share of the entity of Catalan origin.
The bank chaired by Carlos Torres has made an appeal press conference for next Thursday (9:30 am) to explain the details of the operation.
The takeover bid, aimed at all shares of Sabadell, is subject to reaching more than 50% shareholder acceptance. It will therefore be the shareholders of the Catalan entity who will have the final say. More than half of the shareholders are large investment funds that are also present in the BBVA shareholding.
The acquisition must be notified in advance to the Bank of Spain and must have the approval of the European Central Bank.
The BBVA board has also agreed to make his appeal General shareholders meeting to decide on the issue of new shares in the amount necessary to fully cover the exchange.
Sabadell Bank has reiterated its rejection of the takeover bid and referred to its statement on Monday in which it ruled out the operation on the grounds that it “significantly underestimates” the Sabadell project and its growth prospects as an independent entity.
A staff of 1,500 people in the CAV
The two banking entities have a total of approximately 1,500 employees and 338 offices in the Basque Autonomous Community (CAV). If the operation were not carried out, it would require one more than 1 million euros likely restructuring of the resulting entity, and it seems logical to think that this would have an impact on both staff numbers and offices. The unions were already ‘concerned’ when the friendly takeover proposal was announced on April 30.
The purchase would also impact the already increased concentration of the banking sector. The disappearance of dozens of savings banks and regional banks during the 2008 crisis significantly reduced the number of financial entities, and with this operation the Spanish market would be controlled by three major players: CaixaBank, Santander and BBVA. Therefore, effective competition in the sector is worrying.
In Hegoalde, 8 out of 10 branches are owned by five entities: Caixabank, Kutxabank, Caja Rural de Navarra, Laboral Kutxa and BBVA.
This graph shows the concentration movements from 2007 to 2024:
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
