BBVA’s latest purchase intentions for Sabadell closely resemble previous negotiations that ended in failure, with one major exception: the price. The bank has informed the CNMV of its plan to maintain Sabadell’s territorial character if the merger proposal is approved. BBVA suggests two operational headquarters, one in Sant Cugat, and keeping the Banco Sabadell brand in regions with significant commercial interest.
BBVA emphasizes its commitment to Catalonia and aims to support the local business, cultural, scientific, and social fabric. The bank also seeks to strengthen Barcelona’s role as a hub for innovative companies in Europe. BBVA’s respect for the brand is reminiscent of when it integrated CatalunyaCaixa, with plans to maintain the Banco Sabadell brand initially. Currently, Sabadell has a large operational center in Sant Cugat and its headquarters in Alicante.
BBVA highlights the strategic fit and complementarity of both companies, emphasizing Sabadell’s strengths in the business segment and digitalization. The operation would be paid with shares, proposing an exchange ratio of 4.83 Sabadell shares for each BBVA share. The balance of power agreed upon in the past would be replicated, with a focus on not adopting “traumatic measures” for employees or office structures.
The decision to rush the merger attempt was influenced by BBVA’s share price increase, making it challenging to justify from a pricing perspective. The potential negotiation between Sabadell and BBVA will be critical in determining whether or not the merger proposal will succeed.
BBVA’s latest acquisition plans for Sabadell are strikingly similar to those of previous negotiations that fell apart with one notable exception: price.
Sabadell currently has a significant operational center in Sant Cugat and its headquarters in Alicante.
BBVA intends to maintain Sabadell’s territorial character if their merger proposal goes through.
The bank proposes two operational headquarters – one in Sant Cugat – and suggests keeping the Banco Sabadell brand in regions of significant commercial interest.
BBVA emphasizes its commitment to Catalonia and aims to support local businesses while strengthening Barcelona as a hub for innovative companies across Europe.
The balance of power agreed upon previously would be replicated during this transaction without adopting any “traumatic measures” for employees or office structures.
The decision to rush this merger attempt was influenced by an increase in BBVA’s share price, making it challenging to justify from a pricing perspective.