BBVA and Banco Sabadell walk away from merger

Por: Miguel A. Rodriguez

18:58, 27 November 2020

Financial dissensions led to calling off the deal

The week could have ended with a deal in the Spanish banking sector, but the odds were against it.

Banco Bilbao Vizcaya Argentaria (BBVA) and Banco Sabadell – two Spanish lenders, called off the merger talks as they weren’t able to reach a #consensus regarding the financial terms of the transaction. Banco Sabadell released a statement regarding the situation, which read: “Banco Sabadell informs that the Board of Directors has decided to terminate the above-mentioned discussions because the parties have not achieved an agreement on the exchange ratio of both entities.”

The deal, which was meant to create the second-largest domestic bank in Spain with more than €600 billion in assets, was first announced on November 16. Despite the announcement, BBVA’s CEO Onur Genc stated that he’s in no rush, and the bank will analyze everything and that there are also other options to consider.

From the experts’ point of view, the merger would have been crucial as it would have consolidated the #banking sector given that the lenders are facing financial problems due to the pandemic. It would have also benefited Banco Sabadell as it was considered the weaker link in the possible deal. Even without an agreement, BBVA controls 15% of the Spanish market.

Earlier this month, BBVA made public its deal with PNC Financial. The latter bought BBVA’s American subsidiary for almost $12 billion.

Following the news, BBVA #stock price went up 2.3%, while Banco Sabadell reported a 10% decrease.

Read here all about the deal between BBVA and PNC!

Sources: cnbc.com, markets.businessinsider.com

Compartir este artículo

Esta información/estudio preparada por Miguel A. Rodriguez  no tiene en cuenta los objetivos específicos de inversión, la situación financiera o las necesidades particulares de una persona. El analista de estudios es, principalmente, responsable del contenido de este informe de estudio, en parte o en su totalidad, certifica que los puntos de vista sobre las compañías y sus valores expresados en este informe reflejan con exactitud sus puntos de vista personales, y como consecuencia, toda persona que actúe basándose en ellos lo hace bajo su propio riesgo.El estudio proporcionado no constituye los puntos de vista de KW Investments Ltd, ni es una invitación a invertir con KW Investments Ltd El analista de estudios certifica, además, que ninguna parte de su remuneración ha sido, es o será directa o indirectamente relacionada con recomendaciones o puntos de vista específicos expresados en este informe.El analista de estudios no está contratado por KW Investments Ltd Le animamos a buscar asesoramiento con un consejero financiero independiente con respecto a la idoneidad de la inversión, en virtud de otra participación separada, cuando considere oportuno que es conforme con sus objetivos específicos de inversión, su situación financiera o, sus necesidades financieras particulares antes de comprometerse a invertir..Las leyes de la República de Seychelles rigen cualquier reclamación relacionada o que surja por el contenido de la información/análisis proporcionado.