BBVA’s Proposed Takeover of Sabadell Met With Resistance and Escalating Tensions

Banco Sabadell’s board remains firm in its decision to remain independent despite BBVA’s proposed takeover bid. The Spanish Government has also rejected the bid, citing concerns over the impact on banking concentration and territorial cohesion. This has led to a heated debate between the two banks, with Sabadell rejecting BBVA’s offer and launching a hostile takeover bid.

BBVA’s proposed takeover values Sabadell at nearly 11.6 billion euros, offering shareholders a premium and the opportunity to own a stake in BBVA. Despite this attractive offer, Sabadell remains committed to remaining independent, citing concerns over undervaluation of its potential. The ongoing hostilities between BBVA and Sabadell have escalated in recent days, with both sides expressing strong opinions on the proposed merger.

The takeover bid process for Banco Sabadell will involve regulatory approvals and shareholder decisions, potentially lasting more than six months. As the process moves forward, the Sabadell board faces restrictions on defensive actions, limiting their ability to respond to the bid. BBVA must also adhere to the regulatory process and gain approval from various authorities before the offer can be completed.

The outcome of this complex and challenging process will have significant implications for both banks and their shareholders. While BBVA is seeking to expand its operations through this acquisition, Sabadell is determined to remain an independent entity that can continue to grow on its own terms.