Spain 2nd Largest Bank $56 Billion BBVA Receives Approval from European Central Bank to Buy Spain 4th Largest Bank Banco de Sabadell, BBVA Needs to Acquire 50.1% of Banco de Sabadell & Plans Merger after Acquisition
2nd January 2025 | Hong Kong
Spain 2nd largest bank BBVA ($56 billion market value) has received approval from the European Central Bank (ECB) to buy Spain 4th largest bank Banco de Sabadell. BBVA needs to acquire 50.1% of Banco de Sabadell, and plans merger after acquisition. BBVA (1/1/24): “BBVA announced its offer to Banco Sabadell shareholders on May 9th. On July 5th, BBVA held an Extraordinary Shareholders’ Meeting where the bank’s shareholders massively approved the capital increase needed to carry out the share exchange with Banco Sabadell shareholders, with 96 percent of the votes in favor. The green light from the ECB was the next step needed to move forward in this process. Looking toward the future, the BBVA Chair expressed his confidence that “in due course we will receive the remaining approvals and move forward with the most attractive project in the European banking sector.” This project is good for all stakeholders. BBVA shareholders will obtain high returns on investment with limited capital consumption, while Banco Sabadell shareholders will receive a highly attractive premium ( a 50 percent of the weighted average prices over the three months leading up to April 29, this being the date prior to the announcement of the takeover bid), earnings per share (EPS) of 27 percent higher than if the company were to remain a stand-alone entity, and a 16 percent stake in the bank resulting from the merger. In addition, they will all benefit from BBVA’s shareholder distribution policy, which represents payouts between 40 to 50 percent of profit, and the bank’s commitment to distribute any excess capital over 12 percent. Furthermore, customers will have access to a better range of products, and employees stand to benefit from further opportunities for professional growth. The resulting bank will have greater capacity to contribute to economic progress and the wellbeing of Spanish society not only through increased lending, but also through higher taxes. The offer made to Banco Sabadell shareholders remains subject to the approval of the Spanish financial market regulator, the CNMV, to the acceptance of the offer by Banco Sabadell shareholders representing a majority of its share capital, and the approval of the Spanish Market and Competition Commission (CNMC). Once BBVA acquires a stake in Banco Sabadell of 50.01 percent or higher, it plans to merge both banks. This merger is subject to the pertinent regulatory approvals.” In 2024 May, Spain 2nd largest bank BBVA (10/5/24: $60 billion market value) $12.9 billion (EUR 12 billion) all-share offer for the 4th largest bank Banco de Sabadell was rejected by the Banco de Sabadell board. BBVA (9/5/24): “BBVA’s Board of Directors is presenting an offer to Banco Sabadell shareholders so they can benefit from an exceptionally favorable proposal. The deal offers one BBVA share for every 4.83 of Sabadell, representing a 30 percent premium over the closing price of both banks on April 29th, and a 50 percent premium over the weighted average prices of the past three months. The transaction has very positive financial impacts thanks to relevant synergies and the complementarity and excellence of both banks. The operation will create one of the best banks in Europe, with a loan market share close to 22 percent in Spain. Furthermore, BBVA will maintain its current shareholders distribution policy and its commitment to distribute any excess capital above 12 percent.”
“ Spain 2nd Largest Bank $56 Billion BBVA Receives Approval from European Central Bank to Buy Spain 4th Largest Bank Banco de Sabadell, BBVA Needs to Acquire 50.1% of Banco de Sabadell & Plans Merger after Acquisition “
Spain 2nd Largest Bank $60 Billion BBVA $12.9 Billion All-Share Offer for 4th Largest Bank Banco de Sabadell Rejected by Banco de Sabadell Board
10th May 2024 – Spain 2nd largest bank BBVA (10/5/24: $60 billion market value) $12.9 billion (EUR 12 billion) all-share offer for the 4th largest bank Banco de Sabadell has been rejected by the Banco de Sabadell board. BBVA (9/5/24): “BBVA’s Board of Directors is presenting an offer to Banco Sabadell shareholders so they can benefit from an exceptionally favorable proposal. The deal offers one BBVA share for every 4.83 of Sabadell, representing a 30 percent premium over the closing price of both banks on April 29th, and a 50 percent premium over the weighted average prices of the past three months. The transaction has very positive financial impacts thanks to relevant synergies and the complementarity and excellence of both banks. The operation will create one of the best banks in Europe, with a loan market share close to 22 percent in Spain. Furthermore, BBVA will maintain its current shareholders distribution policy and its commitment to distribute any excess capital above 12 percent.”
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