BBVA makes the decision to proceed with the takeover of Banco Sabadell
BBVA is persisting with its public takeover bid (OPA) for Banco Sabadell, despite conditions imposed by the Spanish government. The financial institution has decided not to withdraw its offer, indicating confidence that Sabadell shareholders will accept the bid [2][5].
The Spanish government's condition, which could potentially extend the operational separation period between the two banks to five years, has raised concerns about the projected cost savings and synergies of the merger. BBVA has appealed this restriction to the Supreme Court, hoping for a ruling that would allow the merger to take place before the three-year limit [1][4].
Meanwhile, the terms of the takeover offer are under review. BBVA plans to adjust the exchange ratio to reflect Sabadell’s upcoming dividend payment but has ruled out substantially improving the offer premium, despite Sabadell’s shares trading above the current offer price [1][3].
It's worth noting that Banco Sabadell had the option to withdraw its offer to BBVA, but ultimately chose not to do so. The sale of TSB by Banco Sabadell to Banco Santander, an independent transaction, is not affecting BBVA's takeover bid for Banco Sabadell [6][7].
The National Securities Market Commission (CNMV) was informed of BBVA's decision to proceed with the takeover bid on Monday [3]. The specific terms of the government’s condition for BBVA’s takeover bid were not detailed in the text [1][2].
In summary, BBVA is pressing forward with its bid while pursuing legal avenues to mitigate government-imposed constraints, aiming to finalize the takeover without withdrawing the offer and relying on shareholder acceptance for success [1][2][4][5]. The final outcome of the takeover bid remains uncertain, as the decision ultimately lies with the Sabadell shareholders.
The ongoing business between BBVA and Banco Sabadell remains in the realm of finance, as BBVA persists with its takeover bid (OPA). Despite the Spanish government's conditions potentially extending the operational separation period, BBVA had hoped for a favorable ruling from the Supreme Court to expedite the merger process within the three-year limit.
