The board of directors of Banco Sabadell will meet this Monday to evaluate BBVA’s proposal.
Board of Directors Sabadell Bank will meet this Monday to evaluate the merger proposal through a takeover represented by BBVA, as sources familiar with the meeting explained to Europa Press.
The bank must make a decision if you accept the offer presented, reject it or start negotiations and demands improvement of the proposed conditions. BBVA announced on April 30 to the National Securities Market Commission that it had submitted a proposal for a merger by takeover of the company headed by Josep Oliu.
The merger of BBVA and Sabadell will not change the terms of mortgages and loans.
The offer involves an exchange one newly issued BBVA share for every 4.83 Banco Sabadell shareswhich represents a premium of 30% over the April 29 closing market value.
Offer
The proposal specifically stated that registration as non-executive directors will be offered BBVA Board of Directors three members of the current board of directors from Banco Sabadell, chosen by common consent of both parties.
In addition, the resulting organization will retain the current headquarters of Banco Sabadell. in Sant Cugat del Vallès (Barcelona) as one of the operational headquarters BBVA brand.
Decisive week for the merger of BBVA and Banco Sabadell
In any case, “the use of the Banco Sabadell brand could be preserved through joint efforts.” with the BBVA brand, in these regions or enterprises in which you may have a relevant commercial interest.”
Regarding possible changes in the composition of the workforce, BBVA noted that “in the integration of the workforce, the principles of professional competence and merit will be respected in all cases, without the adoption of traumatic measures or measures that exclusively affect employees originating from one of the two organizations. ”
73 billion
By market capitalization, The market value of the group resulting from this merger will reach 73,000 million euros.According to the current prices of both companies, not far from Banco Santander, which barely exceeds 74 billion euros, almost double the capitalization of CaixaBank (37,500 million).
BBVA offer to take over Sabadell: exchange of 1 new share for every 4.83
This is not the first time that both banks have carried out this operation: Already in 2020, BBVA and Sabadell were exploring the possibility of a mergeralthough they ultimately rejected it because they could not agree on the ratio of the share swap.
Both banks then negotiated for 11 days from the time negotiations were confirmed until they finally considered them to have broken down. BBVA attempted this operation after selling its US business to PNC Financial for $11.6 billion.
If this possible operation is repeated, This would mean ruining another possible transaction. which has dominated market rumors in recent weeks: a possible acquisition of Unicaja by Sabadell Bank, something that the Catalan bank has repeatedly denied.
Other numbers
The entity resulting from the possible integration of Sabadell into BBVA will have global assets of 1.037 billion euros (801.690 million euros from BBVA and 236.135 million euros from Banco Sabadell), according to data at the end of the first quarter of the year. If only assets in the Spanish state are considered, The assets of the resulting bank will be valued at 637,461 million euros. (452.227 million euros from BBVA and 185.234 million euros from Banco Sabadell).
Likewise, the bank will have 7,326 offices worldwide (5,912 in BBVA and 1,414 in Sabadell) and a physical presence of 3,084 offices (1,881 in BBVA and 1,203 in Sabadell).
About employeesThe staff of the combined group will reach 140,776 people.s, of which 41,634 will be in the state.
Interest in this possible transaction comes at a time when both banks have just reported their first quarter results to the market. Banco Sabadell for January-March received a net profit of 308 million euros, up 50.4%; while BBVA recorded a net profit of 2.2 billion euros, up 19.1% than a year earlier.
The total revenue (gross profit) of both companies as of March was 9.662 million euros, 1.444 million in the case of Sabadell and 8.218 million euros for BBVA.