Anger in the Spanish banking sector: first hostile takeover bid since the 1980s | Economy

With the offer, the second-largest Spanish bank is now directly addressing the shareholders of its competitor. The management of the banking company is thereby bypassed. This is a sensitive matter, as the board had rejected the initial offer of 11.5 billion euros.

The Sabadell board believes the amount is too low. But according to Banco Bilbao Vizcaya Argentaria, as BBVA is fully known, there is no room for a higher offer. That is why the same offer has now been sent to the shareholders.

It is the second time that BBVA tries to take over its rival Sabadell. At the end of 2020, the banks briefly negotiated a possible merger. Then they couldn’t agree on the price either.

The merger would create a new major Spanish bank with a balance sheet of more than 1 trillion euros. The combined market value of BBVA and Sabadell would be approximately 70 billion euros. That is approximately equal to the market value of Banco Santander, Spain’s largest lender.

Spanish politics is also joining the battle. Yolanda Díaz Pérez, Spain’s Labor Minister, wrote on X that BBVA’s hostile bid is against the country’s interests and will cost many jobs.

Carlos Cuerpo, the Spanish Minister of Economy, is also against BBVA’s hostile takeover attempt. He stated on the Spanish TV channel TVE that the government “will have the final say when it comes to approving the takeover.”