US EditionSpain's BBVA fails in Sabadell takeover bid
BBVA secured only 25.33% of Banco Sabadell shares, below the 30% threshold for a second bid, amid government concerns over competition and job losses.
- CNMV declared on Thursday that BBVA's takeover bid for Banco Sabadell failed after shareholders tendered just 25.47% of voting rights, below the 30% minimum for a second bid.
- Aiming to build a European lender, BBVA proposed a 16.32 billion offer to become one of Europe's largest with about 1 trillion in assets.
- Regulators and politicians opposed the deal and blocked full merging for at least three years, while Sabadell leadership urged small shareholders to reject the bid despite analysts and investors expecting 30% to 50% take-up.
- BBVA said it will resume shareholder remuneration from October 31 and start a pending share buyback, while Carlos Torres Vila and the BBVA board reaffirmed their plan.
- Observers note this marks the second time a BBVA–Sabadell tie-up has failed, as euro zone banking supervisors urge consolidation but politicians and labour concerns limit deal approvals.
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For the second time the Catalan bank has managed to remain independent, thanks to the support of politics and a hostile advertising campaign
The BBVA achieved 25.47% of Saball's capital, along with 50% of the bank's control. "It is a great satisfaction to confirm that Sabadell's Bank can continue on its own," the president said.
CHRONIQUE. The results fell on Thursday: BBVA, the second Spanish bank, failed to get hold of its competitor, of which 40% of the capital is owned by Catalan companies, financial institutions or private individuals. A political dimension that explains this unexpected camouflet, Isabelle Chaperon, columnist at the "Economie du Monde" service.
BBVA fails in €16.3 billion takeover battle for Sabadell
Spain's BBVA has failed to convince Sabadell shareholders to back its €16.32 billion hostile takeover bid, ending an almost 18-month takeover battle that became one of the country's most contentious deals in recent years.
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