BBVA’s hostile takeover of Sabadell threatens the values of both companies
After several years of hiatus in the sector, where no financial union has been seen, BBVA is interested in taking over Banco Sabadell once again alerted consumers and workers of these enterprises due to possible consequences. In particular, this weekend Banco Sabadell denounced how the public offer of shares (OPA) that BBVA announced for its capital puts the bank at risk “multiple uncertainties” including possible talent drain and costs of business opportunities.
According to those responsible: “It is impossible to predict the length of the regulatory review and CNMV approval process for the OPA. (…) nor the result that, if approved, the OPA may ultimately obtain,” Sabadell warned in its universal registration document, which is a brochure that it publishes annually, but which has attracted more interest this year due to the current situation . essence.
Therefore, a financial company led by Cesar Gonzalez-Bueno realizes that great things exist uncertainty about “possible consequences” that the BBVA takeover bid could affect strategic agreements that the bank has in the areas of business, asset management and institutional image. Something that could have a direct impact on financial benefit of the bank and will therefore create doubt among its employees.
The most common feature of this type of merger is that some of the cost synergies arise from staff reduction to avoid duplicationWith. The President of BBVA himself, Carlos Torresadmitted during a press conference following the May 9 takeover announcement that there would be staff layoffs.
Now, while BBVA’s goal is for this employment reduction to be implemented in the least traumatic way possible, Sabadell is wary and aware of what such statements could mean the possible loss of skilled staff seeking new opportunities, “given the risk of job losses if the acquisition is successful.” Something that will have an impact on the image of the organization both internally and externally, taking into account that employees are an integral part of the company’s values.
Thus, faced with this situation, the President and CEO of Banco Sabadell, Josep Oliu And Cesar Gonzalez-Buenoaccordingly, took advantage of the new milestone in the offensive BBVA at the enterprise again haranguing employees through a video in which they highlight the reasons that led the board of directors to reject the merger project and urge them to continue working to extend the historical results achieved by the bank.
According to Gonzalez-Bueno: “I trust 100%” staff to further improve results, which last year were “the best in history.” And he asked the workers to place focus on “deliver, deliver, deliver.”
Customers are another agent most affected by the potential merger.
In addition, with the possibility Offer to Public Acquisition (OPA) hostile from the side from BBVA to Banco Sabadell caused widespread discussion among consumers. In particular, the Organization of Consumers and Users (OCU) warned that this merger would be another step in banking concentrationwhich will completely impact competition and will undoubtedly lead to fewer options for customers and, as is common with mergers of this type, lower interest rates on savings products (already quite low at present), higher fees and less innovative products .
“At the same time, the restructuring of financial organizations entails more than likely closure of branches and ATMswhich, unfortunately, contributes to inequality in access to banking services, an issue that most affects the most vulnerable users for whom digital banking is not available,” the OCU added.
Therefore, a restructuring that will also affect the most affected clients of Banco Sabadell, who may face changes in their conditions financial products existing ones, such as increased fees or loss of specific benefits associated with them bills, cards, mortgages and current products.
BBA’s reputation suffered the most
However, despite the uncertainty and risks facing Sabadell, BBVA’s reputation has suffered the most at the moment. The president, Carlos Torres unfolded unusual arrogance in the BBVA attack on Sabadell thereby undermining reputation of your company and putting in danger maintaining his image as a banker.
So, once again it is clear that not only Sabadell suffered from this operation, but also BBVA also has a lot at stake as an organization. and besides the money in the Banco Sabadell takeover bid, putting everything from your prestige to your reputation at risk, including your failure to create valuetry to do everything for your desired goal of surpassing Banco Santander,
We will continue to inform…
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