BBVA says the takeover bid’s synergies will be “largely” achieved through technology savings.

VALENCIA (EP). President of BBVA, Carlos Torresargued that the €850 million in synergies his organization estimates it could realize from the takeover bid and subsequent merger with Banco Sabadell correspond to “largely” savings on technology and systems, as well as other general costs.

Torres said this in an internal message sent to employees and to which he had access. Europe Press. In it, BBVA’s president explains to bank employees the steps being taken to file a takeover bid and merge with Banco Sabadell, a project he calls “exciting.”

On the one hand, he argues that the alliance with the Catalan institution will allow BBVA to have “greater scale”, which will lead to the emergence of a second financial institution in Spain and allow it to achieve a loan market share of approximately 22% or more. 100 million customers worldwide.

“Size is becoming increasingly relevant in the financial sector as it comes with fixed costs associated with increasing investments in technology (digitalization, cybersecurity, data, artificial intelligence, etc.). Greater scale allows these costs to be spread across a larger customer base, thereby achieving greater efficiencies,” says Torres.

Thus, he cites as an example that BBVA invested more than 3 billion euros in technology last year, of which 1 billion was in Spain. These are “fixed” costs, independent of the number of bank customers, so if they were to increase, they would remain stable.

“By being more efficient, we will be able to offer better products and services at more competitive prices and thus grow further and create more value for BBVA and Banco Sabadell,” he continues.

In this regard, Torres also explains that the integration of both companies will provide the opportunity to obtain synergies that BBVA estimates at approximately 850 million euros and which “to a large extent” correspond to savings on technology and systems, as well as other general costs.

Likewise, the BBVA president argues that the merger with Banco Sabadell, which he admits has had “very positive” results in recent years, will mean a combination of businesses that are “highly complementary” due to their positioning in different segments. customers in Spain, since, on the one hand, Sabadell has a greater weight in small and medium-sized companies, and BBVA in the retail and large companies segment. However, they are united by a “clear strategic focus” such as digitalization and sustainable development.

Gratitude for the “effort”.

In the message, Torres also expresses gratitude for the efforts made by the teams responsible for the operation, which made it possible to fulfill all requests for regulatory approvals, including the request of the National Securities Market Commission (CNMV), which was accepted for processing yesterday; the National Commission for Markets and Competition (CNMC), as well as the European Central Bank (ECB).

In addition, he recalls the convening of an extraordinary meeting of shareholders scheduled for July 5, at which the issue of the capital increase required to exchange one new BBVA share for every 4.83 shares of Sabadell will be voted on, and sends a letter and video. which was sent to shareholders last Monday.

He also advocates the “value creation” for the bank interest groups that this operation represents, as he has repeatedly emphasized in terms of credit provision, greater financial contribution, greater professional development opportunities for staff. or benefit to shareholders.

Torres concludes his message to employees by encouraging them to “contribute to the success” of the business by maintaining a focus on customers and doing the job “with the same excellence” as they have done so far.

“You are the best representatives of BBVA, who best represent what we are and the enormous opportunities that this group has. Together we are achieving impressive results and I am confident that this project will open new and better opportunities for everyone,” he concludes the message.