Banco Sabadell rejects the BBVA takeover proposal

The board of directors of Sabadell Bank this Monday rejected the absorption proposal that had been launched last week by the BBVAas communicated to the National Securities Market Commission (CNMV), the stock market regulator in Spain.

The governing body of Sabadellwhich in 2020 had already frustrated a first attempt by BBVA to integrate the entity, considers that the unsolicited offer “significantly undervalues” to the bank and its growth prospects as an independent entity.

He BBVAwith a strong presence in several Latin American countries, offered almost 11.5 billion euros (US$ 12.39 billion) through a share exchange to acquire 100% of Banco Sabadell, 17% more than its stock market value at the close of this year. Tuesday, when a new attempt to create the second largest bank in Spain was confirmed.

In his communication to the Spanish regulator, the Sabadell Adds to his reasons for ruling out the absorption the volatility of the shares of the bank chaired by Carlos Torres in recent days, which generates a “additional uncertainty” about the proposal, which offered to exchange a share of the BBVA for every 4.83 of Sabadell.

Alone, the bank with operational headquarters in the town of Sant Cugat (Barcelona, ​​northeast) believes that it will generate greater value for its shareholders.

If you had given the Sabadell his approval of the offer of BBVAwould have meant the creation of the third bank in Europe, only behind the French BNP Paribas and the also Spanish Santander, and the current shareholders of Sabadell would have had 16% of the resulting group, which in the eyes of BBVA gave them the opportunity to also benefit from the value that the operation would have generated.

The merger between the two entities meant the creation of a financial giant with 986,924 million euros in assets, with data from the end of the first quarter of 2024, 135,462 employees and a network of 7,115 offices.