BBVA sells 300 Spanish offices for 100 million euros

BBVA sold portfolio 300 branches V Spain estimated at 100 million euros to a national real estate fund, the name of which has not been disclosed, Bloomberg reports. I advised the operation Alantra and was carried out in the midst of a hostile takeover attempt undertaken by the bank to acquire Sabadell.

This action is part of the bank’s digitalization plan, through which it seeks to advance in the field of new technologies in its business.

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Organization chaired Carlos Torres In its proposal, Banco Sabadell included restructuring costs of approximately 1,450 million euros, partly aimed at reducing the number of offices and employees of the resulting group. Business mergers are typically seen as an opportunity to create synergies and eliminate duplication of subsidiaries in locations common to both companies.

The president said most of those expenses will not be used to close branches, although he did not specify how many offices he expects to close. According to Bank of SpainBBVA is present in 300 postal codes, where it already has an office in Sabadell. In addition, as a result of the merger, the resulting organization will be the only one in 48 zip codes consisting of individuals.

In recent years, banks have significantly reduced their network of physical offices due to digitization businesses, leading to widespread closures in order to save on fixed costs. BBVA ended the first quarter of 2024 with total volume 1881 offices in Spain

which represents a reduction of two locations compared to the first quarter of 2023 and makes it the second largest chain in the domestic market.

In all regions where the bank operates, there was a reduction of 139 branches in March 2024 compared to the previous year, reaching a total of 5,912 branches.

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BBVA is pursuing a digital strategy by promoting the use of its mobile app and website to interact with customers. As part of its digitalization process, the bank has reduced the number of its Spanish branches by almost half over the past four years.

This operation became known after May 9. BBVA will announce a hostile takeover (takeover bid) for all promotions Sabadell Bank, after their first friendly proposal was rejected on April 30. In doing so, the Basque organization aims to take over the entire Catalan bank through this financial mechanism regulated by the National Securities Market Commission (CNMV).

The consideration offered by BBVA to Sabadell shareholders is newly issued share for 4.83 Sabadell shares, as stated in the proposal submitted to the National Securities Market Commission (CNMV). The takeover offer is conditional on achieving more than 50% shareholder approval.

*According to Europa Press.