Banco Sabadell has rejected BBVA’s hostile takeover bid, despite BBVA’s efforts to convince the board of its merits. The Spanish Government has also rejected the takeover bid, citing concerns over the impact on banking concentration and territorial cohesion. With no controlling shareholder in Sabadell, the majority of its shares are held by large investment funds and retail investors.
Despite this setback, BBVA remains determined to acquire Sabadell at a premium price. The proposed merger would value Sabadell at nearly 11.6 billion euros, offering shareholders an attractive opportunity to own a stake in BBVA. However, Sabadell’s board is firm in its decision to remain independent, citing concerns over undervaluation of the bank’s potential.
As the two banks continue their ongoing hostilities over the proposed merger, regulatory approvals and shareholder decisions are necessary for the takeover bid process to move forward. This process may last more than six months due to restrictions on defensive actions by the Sabadell board and adherence to regulatory requirements by BBVA.
The outcome of this complex and challenging process will have significant implications for both banks and their shareholders, as they navigate this volatile terrain in search of growth opportunities and strategic alignment.