Banc Sabadell has formally rebuffed BBVA’s proposed takeover, dealing a major setback to the Basque lender’s ambition of consolidating Spain’s banking sector. In a report submitted to the National Securities Market Commission (CNMV), Sabadell’s board said the offer undervalued the Catalan bank and advised shareholders against supporting it.
The analysis drew on opinions from heavyweight advisers including Goldman Sachs, Morgan Stanley and Evercore Partners International. Together, they concluded that BBVA’s offer neither reflected Sabadell’s current position nor its growth potential.
Concerns were also raised over the supposed cost savings touted by BBVA. Spain’s government has already ruled out any merger between the two entities for at least three years, possibly extending to five. Such restrictions cast doubt over BBVA’s projections for synergies and efficiency gains.
Another sticking point is taxation. Sabadell’s board warned that the proposed operation could trigger unwelcome fiscal consequences for small shareholders, adding to the risks of accepting the deal.
The rejection comes amid heightened scrutiny of Spain’s banking sector, where consolidation has reduced competition and raised questions about the impact on consumers. For Sabadell, the board’s firm stance signals a desire to maintain independence — at least for now.
BBVA may yet attempt to sweeten its offer, but for the moment, Sabadell has drawn a line in the sand, telling shareholders the bank’s future is stronger outside the takeover.
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