BBVA and Sabadell have 70 common shareholders, which is crucial for the merger

Neither BBVA nor Sabadell have major shareholders, but they do have long list of common stockholders this may lead to a merger process between both organizations. Especially considering that in both cases they constitute a relative share of participation.Evans.

For example, BlackRock and Vanguard have more than 3% in each bank (see attached table). If necessary, would you reject a merger in one and approve it in another? Norges has another 3% in each of the enterprises.

Although less noticeable, other objects such as JPMorgan and Goldman Sachs They are also present in both banks simultaneously. There is even a paradox: both entities are connected to each other. BBVA It is invested in itself, through treasury shares or through Asset Management, a division also based in Sabadell.

BBVA’s intention to merge Sabadell to create the eurozone’s largest bank by market capitalization hangs in the balance after the bank’s management, chaired by Josep Oliu, rejected its offer of €2.26 per share last Monday, and yesterday BBVA made sure that you there is a “no”. number” to increase the offered premium of 30%.

Although this operation is obviously at a standstill for the moment, it continues to monopolize the focus of the market, which still has as much chance of its continuation as of its eventual abolition.

The shareholder structure of both companies will be one of the keys to solving the maze. To what extent are common stockholders going to tip the scales one way or the other?

Meetings in London

Sabadell’s directors plan to hold meetings in London this week with some of its major shareholders and international investors, financial sources said. The meetings will discuss both the rejection of BBVA’s takeover and the record results it has delivered in recent months.

The organization repeatedly contacts investors to update them on the progress of the organization, and in this case, the most pressing issue the bank is dealing with is the attempted merger, which was rejected by the governing body chaired by Josep Oliu.

According to Bloomberg reports compiled by EXPANSIÓN, BBVA, the bank led by Carlos Torres has a total of 218 large institutional investors (they control stakes equal to 0.01% of its capital or higher). Sabadell has 113 major shareholders.

Both banks have 71 investors among their shareholders, who, according to an analysis carried out by this newspaper, are exactly the same.

These 71 shareholders control 31.1% of BBVA’s capital and own 18.43% of Sabadell shares. A third of BBVA’s major investors are also from Sabadell, and 63% of the Catalan bank’s major investors also have capital in BBVA.

From Japan to Australia

In addition to BlackRock, Vanguard, Norges, JPMorgan and Goldman Sachs, other large international companies such as UBS and Crédit Agricole are also co-owned. And other institutional investors at the state level or regional administrations of a number of countries. These include the Japanese government, the Cantonal Bank of Zurich or the Commonwealth Bank, Australia’s largest bank by market capitalization.

It’s not just the aggregate percentage that matters. Also the position compared to other shareholders. BlackRock, the world’s largest private equity fund, is the largest shareholder in BBVA and Sabadell. In each case, he is significantly higher than the second shareholder (Capital Research in BBVA and Dimensional Fund in Sabadell).

CaixaBank and Santander

Other Spanish banks such as Santander and CaixaBank (through their management company) also share shares in the two institutions.

The same thing happens with Spanish management companies such as Abante, Gescooperativo, GVCGaesco and Occident (formerly Catalana Occident).

Sabadell’s share price apparently collapsed yesterday due to the prospect that the merger would ultimately fail. Titles fell 4.33% to €1.8. Its capitalization is 9.790 million euros.

BBVA shares were marginally higher, rising 0.93% to €10.29. Yesterday, BBVA reached a market capitalization of 60.072 million euros.