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Spain and Europe shaken by BBVA hostile bid for Sabadell. Banco Sabadell logo on mobile phone.
BBVA’s bid to purchase Sabadell Spain is a ‘concerning move’
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The hostile takeover by Spanish banking giant BBVA is causing concern across Europe. The highly controversial move has drawn sharp warnings from rival Banco Sabadell, which claims the move ‘threatens Spain’s economic wellbeing.’
The dramatic €12.28 billion bid by BBVA to acquire Sabadell has triggered what many are calling the most significant banking battle Spain has seen in years. Spanish media outlets have dubbed the battle a potential financial catastrophe, with accusations of economic harm, competition concerns and political pressure.
According to critics, this is not just about Sabadell – the move puts Spain’s economic health at risk. They warn further consolidation of Spain’s already heavily concentrated banking sector will hurt small businesses, and limit financial competition.
Sabadell’s board are urging the government to intervene and block the move, as – they argue – it would reduce the number of banks available to SMEs, reducing competitiveness within the banking sector.
Sabadell has received support from a broad coalition of business associations and trade unions, as well as chambers of commerce. However, more than 70 of these organisations were shut out of the regulatory process after Spain’s competition watchdog, the CNMC (Comisión Nacional de los Mercados y la Competencia), rejected their Participants are asked to take part.
Sabadell’s chairman Josep Olu has also Warning: Weigh in Shareholders should think twice about the proposed share exchange. He warned about BBVA’s exposure to volatile markets such as Turkey. Mexico, The following is a list of suggested words and phrases Buyers may not always be aware of the terms and conditions. You can also read more about fully merge the two entities if the deal goes ahead – a possible sign of lingering strategic doubts.
BBVA has been in the business of securing loans for years. In 2023, the bank made overtures to Sabadell but were rejected. Now back with a vengeance, its more aggressive play appears to be paying off with investors, with Sabadell’s share price holding a 30% premium since BBVA’s first offer – a sign the market smells a deal.
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