BBVA and Sabadell confirm that they are studying a merger

BBVA headquarters in Madrid.

The movements for integration between the BBVA and the Sabadell Bank They advance by leaps and bounds. Not only the decision of the bank chaired by Carlos Torres de sell its US subsidiary for € 9 billion To improve their financial situation for investments in other markets they aim in this direction. In addition, the two entities are studying the integration process in depth.

BBVA confirmed this Monday the holding conversations with representatives of Banco Sabadell, with the authorization of the board of directors, in relation to a potential merger operation between both entities, having initiated a reciprocal review process (‘due diligence’) in usual terms in this type of operations and external advisers appointed. It is stated that no decision has been made in relation to this potential merger operation and that there is no certainty that it will be adopted nor, in that case, on the terms and conditions of an eventual operation. You will be informed in a timely manner of the decisions that, where appropriate, are adopted in this regard, when and how it corresponds legally.

Both banks have hired advisers to advance in the details of an integration, as published this Monday by ‘El Confidencial’. BBVA wants to make a move in the consolidation of the Spanish banking market. The entity chaired by Carlos Torres has hired the American business bank JP Morgan to address the purchase negotiations of Banco Sabadell, as sources close to the board of directors of the blue bank have informed this newspaper. The two banks have declined to comment.

For several weeks, two teams have been working on behalf of each of the banks, being Goldman Sachs the Sabadell interlocutor, in addition to the respective legal advisors, among which are the offices Uría Menéndez -by Sabadell- and Garrigues -by BBVA-, according to the same sources, to define the conditions of a possible operation. The same sources indicate that auditors have already been surveyed to carry out the ‘due diligence’ (review of assets) for the purchase.

In the hands of BBVA

The presiding entity Josep Oliu it does not deny – nor does it confirm – that these firms have been hired to advance the integration process. Financial sources point out, however, that the alternative of integration was not so much in their hands as in those of the bank chaired by Carlos Torres, which it is actually the one that would have the greatest weight in this process, and it was finally the first to confirm the integration.

Until now, BBVA has been referring to the opinion expressed by the CEO of BBVA, Onur Young, which has repeatedly insisted the bank is focused on organic growth, but will look for M&A opportunities in Spain or elsewhere if there is value for shareholders. Both in Spain and in the rest of the countries where it operates, BBVA’s growth is organic, although “there are opportunities” that must be assessed in each context, he said.


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