BBVA has informed the president of the board of directors of Sabadell, Josep Oliu, of its interest in exploring a possible merger between both banks, in what would be the largest corporate operation in Spain since the integration of CaixaBank and Bankia.
BBVA “has conveyed to the president of the board of directors of Banco de Sabadell the interest of the board of directors of BBVA in starting negotiations to explore a possible merger between both entities,” it states in a note sent to the CNMV.
Shortly after, Sabadell sent its own communication to the market supervisor. In it “he confirms that he has received at 1:43 p.m. an indicative Scythian proposal from BBVA for the merger.” He adds that “the board of directors will properly analyze all aspects of the proposal.”
The news has been reported by the British network SkyNews. According to what he says, BBVA has the advice of JP Morgan in the process.
The formation of the proposal has had an immediate effect on the prices of both entities. BBVA shares fell 4.2%, while those of Sabadell appreciated almost 5%.
Sabadell capitalizes 9.6 billion euros, compared to BBVA’s 60.3 billion. To advance the possible operation, BBVA has already appointed advisors. The bank already attempted an acquisition of Sabadell in 2020.
The good moment of the bank has allowed BBVA to have excess capital that, once dividends have been distributed and share repurchases carried out, exceeds 2,500 million euros. The bank’s directors have highlighted these circumstances, without pointing out to date any potential operations.
The current environment is suitable for mergers, as Alvarez analysts highlight
BBVA is, together with Sabadell, Unicaja and Abanca, the entity with which it is most associated with these possible movements.
BBVA earned 2.2 billion euros in the first quarter, 19% more than in the same period of the previous year, and predicts that it will achieve record profits both this year and in 2025. His forecast is to earn more than 8.8 billion this year.
Banc Sabadell earned 308 million euros in the first quarter of the year, 50.4% more than in the same period of 2023. The interest margin grew by 11.9% year-on-year, to 1,231 million, while commissions They stood at 340 million euros, with a decrease of 3.1% year-on-year.
Despite being in the midst of restructuring its British subsidiary, TSB, the bank is surpassing its record profits. For this year, it plans to exceed the profits of 2023.
