Banco Sabadell’s shares fell 2.11% on Tuesday, while BBVA’s shares decreased by 1.55% to €13.05. This decline coincides with heightened interest from several British banks in acquiring Banco Sabadell’s subsidiary, TSB, adding complexity to the ongoing takeover saga. Stay updated on the latest market movements and acquisition developments.
Amid the recent interest in Banco Sabadell’s subsidiary TSB and BBVA’s hostile takeover bid, the stock prices of both banking giants experienced a downturn.
Banco Sabadell’s shares closed 2.11% lower on Tuesday, while BBVA’s shares fell by 1.55%, trading at 13.05 euros. This development comes as several British banks have expressed interest in acquiring Banco Sabadell’s subsidiary TSB, adding a new dimension to the ongoing takeover saga.
The potential acquisition of TSB would mark a significant turn in the takeover bid process, with the Government’s impending opinion and CNMV approval standing as the final hurdles. The proposed sale of TSB is estimated to be valued at around 2,400 million euros, equivalent to 16% of the market value of Banco Sabadell, which is valued at 15,000 million.
Currently, Banco Sabadell’s shares are trading at a premium of approximately 7.1% over BBVA’s offer. BBVA’s bid includes one share of its own plus 0.7 euros in exchange for 5.3456 shares of Banco Sabadell, making the package of Sabadell shares more valuable than BBVA’s offer. The volatile stock market saw the price gap between the two banks fluctuate, reaching almost 9% at one point during the trading session.
Investors are closely monitoring the situation, with some anticipating a potential improvement in BBVA’s offer or recognizing the growth potential of Banco Sabadell independent of the takeover bid. The final decision regarding the sale of TSB rests with Sabadell’s shareholders, who will be required to vote on the transaction and other critical actions as outlined by takeover bid regulations.
The regulatory process adds a layer of complexity to the takeover bid timeline, with the Council of Ministers set to make a ruling on the operation’s conditions by the end of the week. Following this decision, the CNMV will need to approve the prospectus and determine the acceptance period, which is expected to extend into September. This extended timeline underscores the intricate nature of major corporate transactions in the financial sector.
Overall, the evolving dynamics between BBVA, Sabadell, and TSB highlight the intricate processes and considerations involved in high-stakes mergers and acquisitions within the banking industry, shaping the future landscape of Spain’s financial sector.
