大约四个月前，西班牙第二大银行BBVA向萨瓦德尔银行提出了收购。BBVA表示，该交易将带来成本节约和融资优势。萨瓦德尔银行拒绝了这一提议，称以1股新发行的BBVA股票换取4.83股萨瓦德尔银行股票的报价低估了该公司的价值。该公司表示，该报价还低估了涉及的重组成本。Banco Bilbao Vizcaya Argentaria's hostile takeover bid for its competitor Sabadell Bank has received approval from a UK regulatory agency.
It is learned from the China Fortune Financial and Economic News that Banco Bilbao Vizcaya Argentaria (BBVA.US) has obtained approval from a UK regulatory agency for its hostile takeover bid for its competitor Sabadell Bank (Banco Sabadell SA). This is one of several key regulatory obstacles that BBVA needs to clear before Sabadell Bank's shareholders vote on the transaction.
In a statement, BBVA stated that after obtaining authorization, the Prudential Regulatory Authority of the United Kingdom has given the green light for BBVA to indirectly control TSB Bank Plc, a subsidiary of Sabadell Bank in the UK. BBVA stated that this authorization is a "necessary step" to complete the potential acquisition.
About four months ago, the second largest bank in Spain, BBVA, proposed an acquisition to Sabadell Bank. BBVA stated that the transaction would bring cost savings and financing advantages. Sabadell Bank rejected the proposal, stating that the offer of 1 new share of BBVA stock for 4.83 shares of Sabadell Bank stock undervalued the company. The company stated that the offer also undervalued the reorganization costs involved.
According to the evaluation of Royal Bank of Canada's capital markets, this proposal values Sabadell Bank at 12.28 billion euros (13.16 billion US dollars). BBVA expects the transaction to save 0.85 billion euros in pre-tax costs, and Sabadell's shareholders will receive a 16% stake in the merged bank. BBVA's vision is to create a bank with over 1 billion customers worldwide and assets of over 1 trillion euros, making it the second largest bank in Spain after Banco Santander (SAN.US).
After the management of Sabadell Bank rejected the offer, Carlos Torres, Chairman of Banco Bilbao Vizcaya Argentaria, took the unusual hostile acquisition action and directly made a takeover bid to the shareholders of Sabadell Bank. Before Sabadell Bank's shareholders decide whether to accept the bid, the offer needs approval from numerous regulatory agencies. BBVA stated that this process may last at least until the end of this year.
BBVA stated in the announcement that Sabadell Bank also has operations in the United States, France, Portugal, and Morocco, and the authorities in these countries have also approved the bid. The company stated that it still needs approval from the European Central Bank and the National Securities Market Commission of Spain.
Facing the gradually diminishing boost effect brought by high interest rates, Spanish banks are seeking new ways to increase revenue. If BBVA successfully acquires Sabadell Bank, it will help the bank shift its focus from major markets such as Mexico, Turkey, and South America to a more diversified strategy that focuses on the domestic market.
The Spanish banking industry is going through a period of consolidation, where banks are seeking to enhance their competitiveness through cost reduction and scaling up. Since the global financial crisis in 2008, the number of banks in Spain has decreased from 55 to the current 10. It is worth noting that BBVA and Sabadell Bank had engaged in merger negotiations in November 2020, but the negotiations were eventually canceled due to the failure to reach an agreement on terms including price.
