In response to the ongoing negotiations with Banco Sabadell’s board of directors, BBVA has taken a decisive action by releasing its plans for acquiring the entity. The Spanish bank has proposed a share exchange where Sabadell shareholders would receive one share for every 4.83 shares of the acquired entity. This offer amounts to 2.26 euros per share, based on the closing price of Sabadell shares on April 29.
BBVA believes that the acquisition of Sabadell would bring several benefits to the banking market, including creating a stronger and more profitable entity that can contribute to economic and social development. However, there are concerns about the concentration of entities in the banking market, as expressed by the Government.
To address these concerns, BBVA has urged Sabadell to respond quickly so that they can present a merger project to their respective boards for final approval. In a letter sent to Sabadell’s board of directors, BBVA highlighted the potential benefits of the acquisition and emphasized its positive impact on credit availability, tax contributions, and shareholder remuneration.
The potential acquisition of Sabadell could have a significant impact on the banking market, with 70% of credit and deposits in the hands of three banks. As stakeholders closely monitor this situation, it remains to be seen how this proposal will progress. Despite government concerns about competition and financial inclusion in the banking market, BBVA remains committed to bringing together two strong entities that can benefit from each other’s strengths and expertise.