Banco Sabadell warns retailers that BBVA takeover bid could be extended until 2025

The takeover process of Banco Sabadell, presented by BBVA, could be extended until 2025, as the Catalan company notified its shareholders in a letter sent by President Oliu.

Banco Sabadell has informed its retail shareholders that they have until 2025 to make a decision on BBVA’s hostile takeover attempt, while the Catalan bank tries to avoid the bid.

In a letter sent this week to Sabadell shareholders, compiled by the agency Reuters, President Josep Oliu says investors do not need to make any decisions yet, as the takeover process could continue until the end of 2024 or even 2025..

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That’s when Banco Sabadell’s board will issue a public and detailed recommendation on the offer and they will have to make a decision, the banker adds.

Retail investors represent about half of Sabadell’s shareholders..

Last month, BBVA submitted a merger proposal to Banco Sabadell, which was rejected, after which the bank, chaired by Carlos Torres, decided to file a hostile takeover bid, which caused a great stir in the political, economic and business environment.

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Last week, BBVA asked stock market watchdog CNMV to approve the takeover bid for Sabadell, while the Spanish government expressed its opposition to the merger of the two companies.

BBVA said the process could take six to eight months before it is formally presented to shareholders. The proposal requires a minimum approval of 50.01% of Sabadell shareholders to proceed.

This afternoon, Banco Sabadell shares were up 0.37% at €1.91, while BBVA shares were down 0.56% at €9.92 per share. This year BBVA increased by 25% and Banco Sabadell by 76%.