Banco Sabadell shares soared more than 3.5% on the stock market after BBVA unveiled its offer.

On the other hand, at BBVA the situation is completely different. On Tuesday, it suffered punishment in the market with a drop of 6.65%, and on Thursday, May 2, it went into negative territory again, albeit in a more moderate form. The day started down just over 1% and ended down more than 3.8%.

The markets gave each of the subjects one of lime, and another of sand; The offeror is currently not performing very well on the trading platform, and the offeree does not stop growing. In general, analysts are optimistic about the benefits of a possible operation.

Financial group Jefferies has already analyzed BBVA’s proposal and noted that “the logic is quite clear and justified.” “The integration of both banks in Spain is expected to generate €850 million in annual pre-tax cost savings, with an initial pre-tax restructuring cost of €1.45 billion,” they add.

Likewise, analysts stress that this type of operation will also serve to reduce BBVA’s dependence and high exposure to emerging markets such as Mexico or Turkey. They confirm that strategic reasoning is “valid” and also emphasize that “the numbers work.”

Offer

On Wednesday, BBVA unveiled its proposed merger by takeover with Banco Sabadell. A letter sent to the board of directors of a company of Catalan origin, to which they ask for a response as soon as possible.

The terms of the offer include the exchange of 1 newly issued BBVA share for every 4.83 Banco Sabadell shares; At the same time, BBVA is ready to pay a 30% premium compared to the close of trading on April 29 (before this news became known); 42% of the weighted average prices of the previous month; or 50% of the weighted average price for the last three months. Sabadell shareholders will own 16% of the resulting company.

But it’s not just the price at which Sabadell is valued, which is more than 12 billion euros. Positions on the board of directors are another important consideration in any merger, and in this case the bank faces an organization of Basque origin. Josep Oliu There will remain three seats in the highest decision-making body of the resulting entity, which includes the position of vice-president. Even then, these will be non-executive positions, with the presidency and CEO position remaining in the hands of the BBVA core.

In addition, the proposal includes preserving the “Catalan identity” of the resulting entity. BBVA acknowledges its “commitment” to Catalonia and goes even further, indicating that one of its operational headquarters will remain in Sant Cugat (Barcelona), where Sabadell is currently headquartered. The other operational headquarters will be in Madrid, and the corporate headquarters will be in the Basque Country.

In addition, the offer includes the possibility of maintaining the Sabadell brand in Catalonia; In particular, we are talking about maintaining the brand of the Catalan company “in those regions or enterprises in which it may have a relevant commercial interest.”

Now it remains to be seen how Bank Oliu reacts. According to ABC, the company has no need and has had no tendency to enter into any corporate transactions. The board of directors is expected to meet soon to evaluate the proposal.